LONDON -- The cost of borrowing longer-term U.S. dollars in the interbank market dropped to a new low on Tuesday, falling below 1.0% for the first time while extending a streak of lower fixings to twenty-five days, according to The Wall Street Journal.
Market activity remained subdued as trading resumed in London after the U.K.'s Bank Holiday weekend.
Analysts at Nomura International said the delay in announcing the outcome of the U.S. bank stress tests, now expected to be released on Thursday, had raised some concerns. However, they added that even if a number of institutions are found in need of capital, there will likely be a "solution" announced at the same time to prevent a meltdown in their equity valuations.
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