Bloomberg News

Three-Month Dollar Libor Climbs for 26th Day; TED Spread Widens

October 14, 2011

Oct. 14 (Bloomberg) -- The rate at which London-based banks say they can borrow for three months in dollars rose for the 26th straight day, reaching the highest level since August 2010.

The London interbank offered rate, or Libor, for dollar loans climbed to 0.40472 percent from 0.40306 percent yesterday, data from the British Bankers’ Association showed. That’s the highest since Aug. 9, 2010.

Credit Agricole SA submitted the highest rate today among the contributing panel of 19 lenders, at 0.4650 percent, up from 0.4625 percent yesterday. HSBC Holdings Plc posted the lowest, at 0.2750 percent, unchanged from yesterday.

The dollar Libor-OIS spread, a gauge of banks’ reluctance to lend, widened to 32.57 basis points at 12:07 p.m. London time, from 31.91 basis points yesterday. That’s the most since July 21, 2010.

The TED spread, or the difference between what lenders and the U.S. government pay to borrow for three months, widened to 38.95 basis points from 38.79 basis points yesterday. It reached 39.75 basis points on Oct. 11, the highest level since June 28, 2010.

--Editors: Mark McCord, Nicholas Reynolds

To contact the reporter on this story: Keith Jenkins in London at kjenkins3@bloomberg.net

To contact the editor responsible for this story: Daniel Tilles at dtilles@bloomberg.net


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