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3 month EUR/USD basis swap has continued to deteriorate!

3 month EUR/USD basis swap not only did not improve but has continued to deteriorate, dropping 1.9 bps to -148, the worst since October 10, 2008. What is ironic is that while we know banks have a USD funding problem, they also seem to be having a EUR sourcing issue, despite being able to pull as much cash from the ECB as they want. That is of course assuming they have sufficient collateral for the repo market. Which then begs the question: is the European liquidity crisis shifting to one of evaporating repoable assets?

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