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John Wang
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Forex
April 6 21:00

US dollar borrowing rates are going down to the lowest number in the last decade

Federal Reserve provides oversupply.
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The costs of US dollar borrowing in the forex swap markets has fallen on April 6. Swap rates against British pound and euro have gone down to the smallest figures in the last ten years.
The reduction of the costs happened after the actions taken by the Federal Reserve. The institution updated swap lines with a number of the largest central banks and created an emergency “repo” fund. According to the statement by Natwest analyst, the significant dollar shortage of the last days has been transformed to the oversupply. 
US dollar borrowing rates on FX swap have gone down to a minus 65 bps - the lowest in the last twelve years. The rate has been at over 150 bps just two weeks earlier - the same figures, as in eurozone crisis of 2011.
US dollar borrowing rates against the British pound have gone down as well and are currently at minus 42 bps. Rates against the yen have also gone down and are at minus 30 bps - the lowest figure in the last eight years.