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

Wed Sep 24, 2008 2:59pm EDT
 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)

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