Reuters logo
Euribor rates rise ahead of 3-yr loan early repayment
January 25, 2013 / 10:12 AM / 5 years ago

Euribor rates rise ahead of 3-yr loan early repayment

FRANKFURT, Jan 25 (Reuters) - Euribor bank-to-bank lending
rates inched higher on Friday ahead of a European Central Bank
operation later in the day that will allow banks to repay 3-year
loans early.
    Banks took more than 1 trillion euros of ultra-cheap,
three-year loans, or Long-Term Refinancing Operations, from the
ECB in two separate offers roughly a year ago. The ECB used
these LTROs to try to restore order to Europe's crisis-hit
financial system.
    Banks can repay the money early on a voluntary basis weekly
from now on and while the heavy oversupply of ECB cash has long
depressed the rates banks charge each other on lending markets,
a significant repayment could drive rates higher.
    However, a key ECB policymaker has minimised the impact this
would have on short-term rates. 
    Benoit Coeure, in charge of market operations on the ECB
board, last Friday played down the chance of banks repaying a
massive chunk of their LTRO cash this month and said excess
liquidity in the euro zone remained very high. 
    Reuters calculations show there is currently around 583
billion euros of excess liquidity sitting in euro
zone banks.
    On Friday, three-month Euribor rates,
traditionally the main gauge of unsecured bank-to-bank lending,
edged up to 0.214 percent from 0.211 percent.
    The six-month rate ticked up to 0.356 percent from 0.353
percent while the one-week rate remained at 0.081
percent. The overnight Eonia rate remained at 0.068
    Dollar-priced bank-to-bank Euribor lending rates
  were lower, with three-month rates
falling to 0.49000 percent from 0.49636 percent and one-week
rates dropping to 0.33364 percent from 0.33818 percent.
    Euribor rates are fixed daily by the Banking Federation of 
the European Union (FBE) shortly after 0900 GMT.
    * For a table of the latest Euribor fixings for terms of one
week to one year, double click on 
    * For a table of the previous day's fixings of EONIA swap 
rates, which show market expectations for future overnight 
lending rates, double click on 
    * For graphs of historic Euribor and EONIA swap rates, right
click on the links in angle brackets below, and select 'Related 
    1 week       
    2 week       
    3 week       
    1 month      
    2 month      
    3 month      
    4 month      
    5 month      
    6 month      
    7 month      
    8 month      
    9 month      
    10 month    
    11 month    
    1 year       

 (Reporting by Frankfurt newsroom)

Our Standards:The Thomson Reuters Trust Principles.
0 : 0
  • narrow-browser-and-phone
  • medium-browser-and-portrait-tablet
  • landscape-tablet
  • medium-wide-browser
  • wide-browser-and-larger
  • medium-browser-and-landscape-tablet
  • medium-wide-browser-and-larger
  • above-phone
  • portrait-tablet-and-above
  • above-portrait-tablet
  • landscape-tablet-and-above
  • landscape-tablet-and-medium-wide-browser
  • portrait-tablet-and-below
  • landscape-tablet-and-below