Wednesday, 06 June 2012 00:04
NEW YORK: Investors charged banks and bond dealers less to borrow dollars on Tuesday as they showed more willingness to part with cash on hopes the world's top economies make progress in containing the euro zone's debt crisis.
Finance ministers from the Group of Seven major economies talked about steps towards a financial and fiscal union in Europe, the US Treasury Department said on Tuesday after G7 finance chiefs held an emergency call on the region's debt problem.
The urgency for a solution to the crisis has intensified as cash-strapped Spain said its access to credit markets was drying up.
Hopes for a comprehensive plan to the euro zone debt crisis led some investors to release more cash to lend in the $1.6 tri-party repurchase agreement market, traders and analysts said.
"We have seen a bit more cash coming into the market," said Raymond Gilmartin, head of repo trading at Bank of Nova Scotia ...