Nov. 11 (Bloomberg) -- The cost for European banks to fund in dollars kept within one basis point of a three-year high, according to money-market indicators.
The one-year cross-currency basis swap, the rate banks pay to convert euro payments into dollars, was 75.5 basis points below the euro interbank offered rate at 7:48 a.m. in London, data compiled by Bloomberg show. The measure reached minus 76 yesterday, the most expensive since December 2008.
The three-month basis swap was 113 basis points under Euribor from minus 114 yesterday, a level last reached three years ago. A basis point is 0.01 percentage point.
A measure of banks’ reluctance to lend to one another in Europe was little changed. The Euribor-OIS spread, the difference between the borrowing benchmark and overnight index was 87 basis points.
Lenders increased overnight deposits at the European Central Bank, placing 123 billion euros ($168 billion) with the Frankfurt-based ECB yesterday, up from 114 billion euros Nov. 9. That compares with a year-to-date average of 72 billion euros.
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