Bloomberg Anywhere Login

Bloomberg

Connecting decision makers to a dynamic network of information, people and ideas, Bloomberg quickly and accurately delivers business and financial information, news and insight around the world.

Company

Financial Products

Enterprise Products

Media

Customer Support

  • Americas

    +1 212 318 2000

  • Europe, Middle East, & Africa

    +44 20 7330 7500

  • Asia Pacific

    +65 6212 1000

Communications

Industry Products

Media Services

Follow Us

Euro Overnight Borrowing Cost Rises for First Time Since ECB Cut

July 18 (Bloomberg) -- A measure of overnight borrowing costs in euros rose for the first time since the European Central Bank cut its deposit rate to zero.

The euro overnight indexed average, or Eonia, was set at 11.9 basis points yesterday from a record low 11.4 the day before, according to the European Banking Federation. The gauge of unsecured lending rates, derived from a daily survey of banks, was 33.1 basis points when the ECB lowered its benchmark rates.

An estimate of overnight borrowing costs over the next three months also rose. The Eonia OIS swap was 10.6 basis points at 9:25 a.m. in London from 9.9 yesterday, according to data compiled by Bloomberg.

Banks reduced overnight deposits at the Frankfurt-based ECB yesterday as lenders placed 382 billion euros ($469 billion) from 404 billion euros the day before.

The cost for European banks to borrow in dollars fell to a seven-week low. The three-month cross-currency basis swap, the rate banks pay to convert euro interest payments into dollars, was 46.5 basis points below the euro interbank offered rate from minus 47 the day before.

The one-year basis swap was 53 basis points, or 0.53 percentage point, below Euribor from minus 52. Euribor is the rate banks say they see each other lending in euros, according to the same panel of banks that contribute to Eonia. Three-month Euribor was set at a record low 0.47 percent yesterday.

Euribor is published daily after 10 a.m. London time and Eonia is published at the end of the day.

To contact the reporter on this story: Katie Linsell in London at klinsell@bloomberg.net

To contact the editor responsible for this story: Paul Armstrong at parmstrong10@bloomberg.net

Please upgrade your Browser

Your browser is out-of-date. Please download one of these excellent browsers:

Chrome, Firefox, Safari, Opera or Internet Explorer.