April 23, 2020 / 9:27 AM / 3 months ago

Euro zone 3-mth money market rate rises to 4-year high

LONDON, April 23 (Reuters) - A key euro zone money market rate rose to its highest level in more than four years on Thursday, in a sign of that funding pressure remains elevated in the single currency bloc.

The three-month Euribor rate was fixed at -0.16% in morning European trading, up from -0.19% late on Wednesday. It was at its highest level since early 2016.

Bond analysts said that an easing in collateral rules announced by the European Central Bank would help ease pressure on interbank rates but would take time to feed through.

The ECB said late on Wednesday it would let banks post collateral that was downgraded to junk during the coronavirus outbreak to prevent a credit squeeze in the euro zone.

Reporting by Dhara Ranasinghe; editing by Sujata Rao

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