The Libor-OIS spread, a gauge of cash scarcity, widened for an eighth day as banks hoard funds.
The difference between the three-month London interbank offered rate for dollars and the overnight indexed swap rate widened 7 basis points to 254 basis points as of 8.44am in London.
It averaged 8 basis points in the 12 months to July 31st, 2007, before the credit squeeze spurred by the US subprime-mortgage crisis began.
Bloomberg