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Euribor rates dip as ECB vows liquidity will remain ample
August 5, 2013 / 9:35 AM / 4 years ago

Euribor rates dip as ECB vows liquidity will remain ample

FRANKFURT, Aug 5 (Reuters) - The key Euribor bank-to-bank
lending rate fell slightly on Monday, breaking an uptrend after
the European Central Bank reaffirmed its commitment last week to
provide ample liquidity for as long as needed.
    The dip snapped a steady rise that took hold early in July,
when ECB policymakers began qualifying their adoption of
'forward guidance' on interest rates. 
    The ECB reaffirmed last Thursday that it will keep its
official interest rates at record lows for an extended period
and the bank's president, Mario Draghi, said "let me stress ...
liquidity will remain abundant."
    "It will stay ample for as long as needed so as to guarantee
banks full access to funding," he added after the ECB left its
main interest rate at a record low of 0.5 percent.
    Draghi also said that expectations of rate hikes in money
markets were, "according to our assessment unwarranted."
    On Monday, the three-month Euribor rate,
traditionally the main gauge of unsecured bank-to-bank lending,
eased to 0.227 percent from 0.228 percent.
    The six-month rate was unchanged at 0.341
percent while the one-week rate dipped to 0.104
percent from 0.105 percent. The overnight Eonia rate 
eased to 0.084 percent from 0.093 percent.
    Dollar-priced bank-to-bank Euribor lending rates
  were unchanged, with three-month rates
at 0.49167 percent and one-week rates at 0.30667 percent.
    Excess liquidity in the euro zone banking
sector fell to 255 billion euros, still high enough to keep
short-term market rates below the ECB's refinancing rate, but
starting to have some upward pressure.
    The ECB said in its July monthly bulletin as long as excess
liquidity "remains above a certain threshold, estimated to be in
the range of 100 billion to 200 billion euros, short-term money
market rates are expected to stay slightly above the deposit
    The ECB's main refi rate is at 0.5 percent and the deposit
rate at zero.
    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       
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    4 month      
    5 month      
    6 month      
    7 month      
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    10 month    
    11 month    
    1 year       

 (Reporting by Frankfurt newsroom)

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