3-mo dlr, stg Libor rates hit record lows pre-Fed decision

LONDON, Aug 12 (Reuters) - The interbank cost of borrowing
three-month euros edged lower on Wednesday while equivalent
dollar and sterling rates set fresh record lows ahead of the
U.S. Federal Reserve's policy decision, according to the latest
daily fixing from the British Bankers' Association.

The spreads of three-month London interbank offered rates
over OIS rates for dollars and euros held steady while the
equivalent spread for sterling tightened two basis points to 40
basis points -- coming below the euro spread.

The spread expresses the three-month premium paid over
anticipated central bank rates, or Overnight Index Swap rates
and is seen as a gauge of banks' willingness to lend to each
other -- a wider spread is seen as an indication of decreased
inclination to lend.

The Federal Reserve is expected to leave interest rates
steady at the conclusion of the meeting at around 1815 GMT.

Below is a table of the London interbank offered rates
(Libor) for dollar, euro and sterling funds in percentage terms,
with the change from the previous session in parentheses.

EURO STERLING DOLLAR
O/N 0.27250 (-0.09875) 0.53750 (-0.00250) 0.23750 (-0.00375)
1WK 0.32375 (-0.00500) 0.54500 (-0.00250) 0.26125 (+0.00000)
2WK 0.35500 (-0.00875) 0.55250 (-0.00250) 0.26750 (+0.00000)
1MO 0.47250 (-0.01375) 0.56375 (-0.00250) 0.27406 (-0.00044)
2M0 0.66563 (-0.00750) 0.63750 (-0.01500) 0.31938 (-0.00125)
3MO 0.83938 (-0.00562) 0.80125 (-0.02688) 0.44969 (-0.00469)
6MO 1.11500 (-0.00438) 1.02625 (-0.01875) 0.86875 (-0.02250)
1YR 1.33563 (-0.00375) 1.33000 (-0.02500) 1.46000 (-0.05063)

3MTH LIBOR/OIS SPREAD (BPs)

42 (UNCH) 40 (-2) 27 (UNCH)

For RICs to the above rates, go to <0#LIBORSUPERRICS>.
(Reporting by George Matlock)