EURUSD is quoted at 1.0879/84. Lets say O/N forward points are quoted at +0.032/+0.332. Lets say based on these quotes I want to derive my implied funding cost (USD interest rate) if I wanted to borrow USD via an FX swap (sell EURUSD spot, buy it forward). I want to sell EUR spot so I would lift the quoted bid (1.0879) I want to buy EUR forward so I would lift the quoted forward point offer (+0.332). Assume that the ON interest rate for EUR is -0.44%.
My equation that I'm trying to solve is this:
(1.0879)*[(1+x/365)/(1-0.0044/365)] = (1.0884+0.332/10000)
Solving for x gives me 17.5% which isn't even close to the answer (Bloomberg shows -0.3342% and 0.6587% bid and ask implied yield)... I cant figure out what I'm doing wrong. Can someone please help me?