U.S. 3-month LIBOR/OIS spread widest since May 2009

[March 20, 2018]  NEW YORK (Reuters) - A gauge of stress in the U.S. money markets climbed to its highest level in nearly nine years on Tuesday on concerns about growing costs for banks and other companies to borrow dollars and further interest rate increases from the Federal Reserve.

At 8:36 a.m. (1236 GMT), the difference between the three-month dollar London interbank offered rate and three-month overnight indexed swap rate expanded to 55.814 basis points, the widest since 56.050 basis points on May 19, 2009, according to Reuters data. At the end of 2017, it was 27.83 basis points.

(Reporting by Richard Leong; Editing by Bernadette Baum)

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