US SWAPS-Interbank worries push 2Y spread to record wide

NEW YORK, Sept 24 (Reuters) - The cost to exchange U.S.
two-year fixed-rate interest payments for floating rates in the
interest rate swap market surged to record highs on Wednesday
due to worries about a surge in bank-to-bank lending costs.

The risk premium on two-year swaps over comparable
Treasuries was last 161.50 basis points in late trading,
compared with 139.25 basis points late on Tuesday.

(Reporting by Richard Leong, Editing by Chizu Nomiyama)