LONDON (MNI) - The three month euro LIBOR/OIS spread, having widened by just over 1 basis point Monday, reversed the move Tuesday, tightening by 1.35 basis points.

The tightening was driven by a 1.1 basis point increase in the OIS rate, with three month LIBOR declining by 0.25 basis point. The euro LIBOR/OIS spread has been volatile in recent days, with no clear underlying trend.

The dollar 3-month LIBOR/OIS spread, on the other hand, has tightened markedly since Feb 4, and is now below 9.5 basis points, at levels not seen since late December. On Tuesday, the 3 month dollar LIBOR/OIS spread tightened 0.55 basis points to stand at 9.45 basis points.

Sterling 3-month LIBOR/OIS widened 0.5 basis points to 17.5 basis points.

The following table shows LIBOR rates and LIBOR/OIS spreads

LIBOR LIBOR LIBOR 3 month Day Chg Latest Previous Change LIBOR/ LIBOR/ Day Day bps OIS bps OIS bps

euro o/n 0.61750 0.28125 33.63 euro 1 wk 0.31125 0.31250 -0.12 euro 1 mo 0.38438 0.38563 -0.12 euro 3 mo 0.59813 0.60063 -0.25 23.113 -1.350 stg o/n 0.52063 0.52000 0.06 stg 1 wk 0.51938 0.51750 0.19 stg 1 mo 0.52813 0.52500 0.31 stg 3 mo 0.63031 0.62469 0.56 17.531 0.512 dlr o/n 0.17063 0.17063 0.00 dlr 1 wk 0.20875 0.20875 0.00 dlr 1 mo 0.22844 0.22844 0.00 dlr 3 mo 0.25000 0.25000 0.00 9.450 -0.550