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The cost for European banks to borrow in dollars held at the highest in almost two months, according to a money-markets indicator.
The three-month cross-currency basis swap, the rate banks pay to convert euro interest payments into dollars, was little changed at 55.5 basis points below the euro interbank offered rate at 8:50 a.m. in London, according to data compiled by Bloomberg. That’s near the most expensive since April 10.
The one-year basis swap increased to 69 basis points below Euribor, the highest cost in two weeks, from minus 68 on June 1. A basis point is 0.01 percentage point.
Prices in the forward market for three-month Euribor relative to overnight indexed swaps -- known as the FRA/OIS spread -- were unchanged at 33 basis points.
The Euribor/OIS spread was 40 basis points from 41 at the end of last week.
Lenders increased overnight deposits at the Frankfurt-based European Central Bank on June 1, placing 785 billion euros ($975 billion) from 769 billion euros the day before.
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