July 24 (Bloomberg) -- An estimate of future average overnight borrowing costs in euros fell to a record, according to a money-market indicator.
The three-month Eonia overnight indexed swap fell as much as 1.3 basis points to eight basis points, according to data compiled by Bloomberg, and was 8.9 basis points at 9:15 a.m. in London. The European Banking Federation’s euro overnight indexed average, or Eonia, of unsecured lending transactions was set at 11.6 basis points yesterday from 11.5 on July 20.
The cost for European banks to borrow in dollars fell with the three-month cross-currency basis swap at 47 basis points below the euro interbank offered rate from minus 48 yesterday.
Banks increased overnight deposits at the European Central Bank yesterday for the first time in a week, lodging 356 billion euros ($431 billion) with the Frankfurt-based ECB from 349 billion euros on July 20.
Three-month Euribor was set at a record low 0.442 percent yesterday from 0.451 on July 20. Euribor is the rate banks say they see each other lending in euros, according to the same panel of banks that contribute to Eonia.
The London interbank offered rate, or Libor, for three-month dollar loans was 0.451 percent yesterday from 0.452 on July 20, the lowest since Nov. 9. Libor is published by the British Bankers’ Association.
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