3-mo dlr, euro, stg Libor rates set record lows

LONDON, Aug 13 (Reuters) - The interbank cost of borrowing
three-month dollar, euro and sterling funds set record lows on
Thursday, a day after the U.S. Federal Reserve's policy
decision, according to the latest daily fixing from the British
Bankers' Association.

The spread of three-month London interbank offered rates
over OIS rates for dollars narrowed, and for sterling and euros
wiidened. But the sterling spread remained below the equivalent
euro spread for a second successive day.

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 left its policy rate unchanged in a
range of zero to 0.25 percent on Thursday, as expected, where it
has been anchored since mid-December. The Fed said rates would
likely remain near zero for an extended period. [ID:nN1272730]

But the Fed also signalled that its present $300 billion
bond-buying spree would cease at the end of October - ensuring
that the pace of buying bonds would slow from previous months'
levels.

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 0.27188 (-0.00062) 0.53375 (-0.00375) 0.23250 (-0.00500)
1WK 0.32500 (+0.00125) 0.54375 (-0.00125) 0.26000 (-0.00125)
2WK 0.35125 (-0.00375) 0.54875 (-0.00375) 0.26750 (+0.00000)
1MO 0.46500 (-0.00750) 0.55875 (-0.00500) 0.27281 (-0.00125)
2M0 0.66375 (-0.00188) 0.62125 (-0.01625) 0.31500 (-0.00438)
3MO 0.83625 (-0.00313) 0.78375 (-0.01750) 0.44000 (-0.00969)
6MO 1.10750 (-0.00750) 1.00250 (-0.02375) 0.85125 (-0.01750)
1YR 1.32875 (-0.00688) 1.30625 (-0.02375) 1.41875 (-0.04125)

3MTH LIBOR/OIS SPREAD (BPs)

43 (+1) 42 (+2) 26 (-1)

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