3-mth dollar interbank rates fall, spreads narrow

LONDON, May 6 (Reuters) - The rates banks charge each
other for lending three-month dollars fell on Wednesday, a day
after equivalent Libor rates hit a record low below 1 percent.

The U.S. two-year swap spread, seen as a key measure of
broader banking and financial market stress, narrowed to 51
basis points from around 58 basis points, Reuters charts showed.

Three-month dollar deposit rates USD3MD= were quoted in a
range of 0.6-1.21 percent versus 1.00-1.22 percent early on
Tuesday, while three-month sterling rates were between 1.07-1.15
percent versus 0.98-1.36 percent GBP3MD=.

Equivalent three-month euro deposit rates EUR3MD= were
indicated in a 1.21-1.34 percent range on Wednesday, ahead of
the European Central Bank's policy meeting on Thursday, compared
with 1.28-1.35 percent early on Tuesday.

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.