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Monday, April 6, 2009

3-mth Dollar, Euro, Sterling interbank rates slip

LONDON, April 6 (Reuters) - Interbank lending rates for three-month euro, dollar and sterling funds eased on Monday, as bets that the worst of the financial market crisis may be over suggested banks may be more willing to lend. Japan said it would spend at least $100 billion more to boost its economy, while global equities and commodities extended last week's rebound.

The picture wasn't uniformly rosy, however: two-year U.S. interest rate swaps spreads widened slightly and euro zone banks' overnight deposits at the European Central Bank rose to their highest in a month.

Three-month euro deposit rates were indicated between 1.20 and 1.43 percent versus 1.20-1.46 percent early in London on Friday.

Three-month dollar deposit rates were indicated in a range of between 1.10 and 1.45 percent, compared with 1.20-1.45 percent while three-month sterling funds were quoted in a 1.05-1.40 percent range compared with 1.38-1.48 percent.

Interbank deposit rates are only indicative prices of where banks are lending to each other, which institutions use as a base to set their own lending rates.

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