Dollar funding costs lower

Dollar funding costs crept a fraction lower in Asia on Monday and swap spreads barely tightened, but still the trends showed a steady improvement in risk appetite spurred by growing optimism over the health of the banking system. In Singapore, 3-month dollars are quoted at 1.13304 percent, down from 1.13857 on Thursday last week and inching closer to this years trough at 1.09 percent in mid-January.
Markets in Singapore were closed on Friday. Eurodollar futures are also up with December eurodollar futures pricing 3-month LIBOR at 1.33 percent, compared with 1.35 percent on Friday. The spread between LIBOR and overnight-indexed swaps (OIS), the latter a measure of market expectation of policy rates, is steady at 93 basis points, having tightened over the past month. Markets in London are closed on Monday for the Easter holiday.