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Could someone please explain why certain Cross currency pairs like EURUSD or GBPUSD show higher bids then offers in Bloomberg? e.g for a 5y GBP/USD Xccy Swap bids could be at -5 bps and the offer at -5.5bps. This seems very counter-intuitive.

Any response would be greatly appreciated.

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    $\begingroup$ If I remember correctly, the basis vs. USD always relates to the non-USD leg. But the pay / receive relates to the "second" currency. So bid GBP/USD 5y basis means bidding (paying) USD and receiving GBP, in which case your "bid" is to "receive" the basis, so in that case you want to receive more and your bid is less negative than the offer. I haven't traded basis swaps for a couple of years now and I am not 100% sure if this is correct, but I believe it explains why the bid is seemingly higher than the offer. $\endgroup$ – Jan Stuller Jan 15 at 22:07
  • $\begingroup$ Thanks that would explain it $\endgroup$ – Johnny Treawoski Jan 18 at 12:51

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