NEW YORK, May 25 (Reuters) - A key measure of bank borrowing costs for three-month dollars fell to an eight-week low on Friday, signaling the growing cash available in money markets as the U.S. government has reduced its sale of Treasury bills.
The London interbank offered rate for three-month dollars was fixed at 2.31813 percent on Friday, the lowest level since 2.31175 percent on March 29.
On May 4, three-month dollar LIBOR increased to 2.36906 percent, the highest since November 2008.
LIBOR is a rate benchmark for $200 trillion on dollar-denominated interest rate swaps, loans and other financial products.
The Treasury had ramped up its offering of Treasury bills in March and April to replenish its coffers following a two-year budget deal and the suspension of the federal debt ceiling in late February. (Reporting by Richard Leong; Editing by Bernadette Baum)