Euribor rates rise after ECB signalled wait-and-see stance

Fri Jun 7, 2013 5:14am EDT

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FRANKFURT, June 7 (Reuters) - Euribor bank-to-bank lending
rates rose on Friday, a day after the European Central Bank left
interest rates on hold and poured cold water on hopes of policy
easing in the near future.
    ECB President Mario Draghi said economic conditions did not
warrant moves such as making banks pay to park their money with
it overnight by taking the deposit rate into negative territory
or cutting its main rate from a record low of 0.5 percent.
    But these and other unconventional options, including very
long-term loans to banks, measures to fire up the market for
asset-backed securities (ABS) and tweaks to its collateral
framework were "on the shelf", Draghi said.
    The three-month Euribor rate, traditionally
the main gauge of unsecured bank-to-bank lending, rose to 0.203
percent from 0.200 percent.
    The six-month rate increased to 0.308 percent
from 0.300 percent and the one-week rate ticked up
to 0.089 percent from 0.088 percent. The overnight Eonia rate
 rose to 0.083 percent from 0.081 percent.
    Dollar-priced bank-to-bank Euribor lending rates
  were mixed, with three-month rates
unchanged at 0.46222 percent and one-week rates falling to
0.27222 percent from 0.27333 percent.
    Excess liquidity in the euro zone banking
sector was at 273 billion euros, helping keep market rates below
the ECB's refinancing rate.
    Draghi said in February that he did not expect market rates
to face upward pressure until excess liquidity in the banking
sector fell below 200 billion euros.
    
    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 
Graph'  
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 (Reporting by Frankfurt newsroom)
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