3-mth dlr interbank deposit rate range widens

LONDON, May 27 (Reuters) - The rates banks charge each other
for lending three-month dollar funds were indicated in a
slightly wider range on Wednesday, while the equivalent cost of
euros was steady.

The U.S. two-year swap spread, seen as a key measure of
broader banking and financial market stress, edged out to 41
basis points from 39 basis on Tuesday. Last week the spread fell
as low as 32 basis points, its narrowest since November 2006.

Three-month dollar deposit rates USD3MD= were indicated in
a range of 0.67 to 0.90 percent, compared with 0.74-0.85 percent
early on Tuesday, according to Reuters data, while equivalent
euro rates EUR3MD= were indicated between 1.12 and 1.21
percent versus 1.15-1.20 percent.

Three-month sterling deposit rates GBP3MD= were
indicated between 0.83 and 0.96 percent versus 0.78-1.08 percent
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.
(Reporting by Emelia Sithole-Matarise)