Bloomberg News

Three-Month Dollar Libor Rises for 35th Day; TED Spread Widens

October 27, 2011

Oct. 27 (Bloomberg) -- The rate at which London-based banks say they can borrow for three months in dollars rose for the 35th day, the longest run of increases since November 2005.

The London interbank offered rate, or Libor, for dollar loans climbed to 0.42806 percent from 0.42472 percent yesterday, data from the British Bankers’ Association showed. That’s the highest level since Aug. 3, 2010.

Credit Agricole SA submitted the highest rate today among the contributing panel of 19 lenders, at 0.49 percent, unchanged from yesterday. HSBC Holdings Plc posted the lowest, at 0.2750 percent, also unchanged.

The dollar Libor-OIS spread, a gauge of banks’ reluctance to lend, widened to 34.66 basis points at 11:48 a.m. London time, from 34.52 basis points yesterday, set for the highest closing level since July 3, 2009.

The TED spread, or the difference between what lenders and the U.S. government pay to borrow for three months, widened to 41.79 basis points from 41.46 basis points yesterday, heading for the highest closing level since June 23, 2010.

--Editors: Daniel Tilles, Peter Branton

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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