Oct. 25 (Bloomberg) -- Money market indicators in Europe were little changed as leaders prepare for a summit tomorrow to discuss how to contain the region’s debt crisis.
A measure of banks’ reluctance to lend to one another in Europe, the Euribor-OIS spread, was 77.5 basis points at 11:46 a.m. in London, from 76.5 yesterday. The measure, the difference between the borrowing benchmark and overnight index swaps, reached 89 basis points on Sept. 23, the widest since March 2009.
The cost for European banks to fund in dollars was also little changed. The one-year basis swap, the rate banks pay to convert euro payments into dollars, narrowed to 66 basis points below the euro interbank offered rate from 67 yesterday, according to data compiled by Bloomberg.
The three-month cross-currency basis swap was 93 basis points under Euribor from 95 yesterday. A basis point is 0.01 percentage point.
Overnight deposits at the European Central Bank fell slightly. Banks parked 198 billion euros ($276 billion) at the Frankfurt-based ECB yesterday, down from 202 billion euros on Oct. 21. That compares with a year-to-date average of 63 billion euros.
Three-month Euribor -- the rate banks say they pay for three-month loans in euros -- was unchanged at 1.588 percent. One-week Euribor fell to 1.151 percent from 1.153 percent.
The three-month dollar London interbank offered rate, or Libor, rose for the 33rd day to 0.422 percent from 0.420 percent, according to the British Bankers’ Association. That’s the highest since Aug. 4, 2010.
--Editor: Michael Shanahan
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