Eurodollar deposits

Late yesterday, three-month Eurodollar deposits were offered at 8.50 percent.

Three-month Eurodollar deposits would have to get to 8.25 percent before they do that."

Temporary or not, the higher funds rate helped lift interest rates for three-month Eurodollar deposits slightly to about 7 1/2 percent.

Now, pork bellies and three-month Eurodollar deposits are equally at home on the exchange.

After the dip in the funds rate late last week, three-month Eurodollar deposits were offered at a rate of 8 5/ 16 percent.

Some governments of countries earning dollar surpluses supply Eurodollar deposits as a matter of policy.

"When the stock market headed south with the dollar, there was a brief rush into Treasury bills and Eurodollar deposits, which caused rates to fall."

Amounts borrowed will bear interest at rates determined by Eurodollar deposits, or the prime interest rate, at the company's option.

That has not happened, partly because the cost of other sources of bank funds, including three-month Eurodollar deposits, has remained stubbornly high.

For example, one-month Eurodollar deposits were offered yesterday at 5 percent, while three-month deposits were 4 1/2 percent.

Over the last month, upward movement in key short-term instruments, such as 90-day domestic certificates of deposit and three-month Eurodollar deposits, had narrowed to slim margins.

Eurodollar deposits, on lent, became the means by which the OPEC surpluses were re-cycled back to deficit countries to enable such deficits to be financed.

Elsewhere in the short-term market, rates were little changed, with three-month Eurodollar deposits at about 7 3/8 percent and one-month commercial paper of industrial companies at 6.65 percent.

Much of the increase in M-3 was the result of a big rise in Eurodollar deposits held by American residents in foreign offices of American banks.

The second issue in the case goes beyond Eurodollar deposits to the more general question of whether the home office may ever be required to make good on deposits in foreign branches.

In general terms, Eurodollar deposits in the UK, for example, far exceed the corresponding dollar claims on American banks which UK banks have.

As for the taxable yields, he said that large amounts of institutional money had moved out of the taxables to seek better yields elsewhere: for instance, in commercial paper or Eurodollar deposits.

Officials at Manufactuers Hanover estimated that the cost of consumer deposits was three-quarters of a percentage point to a full percentage point lower than the millions in Eurodollar deposits they will replace.

Three-month Eurodollar deposits, the largest wholesale market for bank deposits, were offered at 8 1/2 percent, but traders said some banks were paying well in excess of that rate to lock in three-month money.

Eurodollar Rates Cited But a number of bankers said a cut in the prime might be delayed because other key financing costs, like three-month Eurodollar deposits, remained stubbornly high despite recent declines in the overnight funds market.