Sept. 30 (Bloomberg) -- The rate at which London-based banks say they can borrow for three months in dollars rose for a 16th day, reaching the highest level since August 2010.
The London interbank offered rate, or Libor, for dollar loans climbed to 0.37433 percent from 0.37211 percent yesterday, according to data from the British Bankers’ Association. That’s the highest rate since Aug. 12, 2010.
The dollar Libor-OIS spread, a gauge of banks’ reluctance to lend, widened to 28.63 basis points at 12:47 p.m. in London, from 28.41 yesterday. The spread reached 28.95 basis points on Sept. 19, the widest on a closing-price basis since July 27, 2010, according to data compiled by Bloomberg.
The TED spread, or the difference between what lenders and the U.S. government pay to borrow for three months, widened to 36.42 basis points from 36.19 basis points yesterday. That’s the highest level since July 20, 2010.
--Editors: Nicholas Reynolds
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