European banks’ reluctance to lend to one another fell for the thirteenth week to the lowest in eight months, according to a money-market indicator.
The Euribor-OIS spread, the difference between the euro interbank offered rate and overnight indexed swaps, was 42 basis points at 8:15 a.m. in London, data compiled by Bloomberg show. The measure has fallen every week this year to the lowest level since Aug. 3.
The cost for banks to convert euro interest payments into dollars fell for the fourth week with the the three-month cross- currency basis swap at 51 basis points below Euribor. The cost reached an eight-month low of minus 49.5 on March 26.
The one-year basis swap was 45 basis points less than Euribor, from minus 44 yesterday. A basis point is 0.01 percentage point.
Lenders increased overnight deposits at the ECB yesterday to 786 billion euros ($1.1 trillion), up from 777 billion euros on March 28.
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