European banks’ reluctance to lend to one another rose from the lowest level in nine months, according to a money-market indicator.
The Euribor-OIS spread, the difference between the euro interbank offered rate and overnight indexed swaps, was 40 basis points at 8:45 a.m. in London from 39 yesterday, data compiled by Bloomberg show. The measure reached 38.9 basis points on April 20, the lowest since the beginning of August.
The cost for banks to convert euro interest payments into dollars fell. The three-month cross-currency basis swap was 44 basis points below Euribor from 45 yesterday.
The one-year basis swap was 48.5 basis points less than Euribor from minus 51 yesterday. A basis point is 0.01 percentage point.
To contact the reporter on this story: Katie Linsell in London at firstname.lastname@example.org
To contact the editor responsible for this story: Paul Armstrong at email@example.com