European banks continue to deluge the U.S. debt markets with short-term financings.

Swiss Bank Corp. issued $200 million of one-year notes to yield 4.35%.

Foreign banks have raised $3.5 billion this year through U.S. offerings of short-term debt securities.

Last week, two German banks - Deutsche Bank and Bayerische Landesbank - each raised $100 million through one-year deals.

Short-term interest rates are much higher in Europe than in the United State, so borrowing here is attractive to foreign companies. For example, short-term rates are six percentage points higher in Germany than here.

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