Euribor rates ease after Fed launches tempered taper plan

Thu Dec 19, 2013 5:19am EST

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FRANKFURT, Dec 19 (Reuters) - Euro-priced bank-to-bank
lending rates fell on Thursday after the U.S. Federal Reserve
began to wind down the era of easy money as its economy gains
strength. 
    The Fed modestly trimmed the pace of its monthly asset
purchases, by $10 billion to $75 billion, and sought to temper
the long-awaited move by suggesting its key interest rate would
stay at rock bottom even longer than previously promised.
    Investors took the action as a validation that the outlook
for the economy was improving.  
    The European Central Bank kept interest rates unchanged at a
record low of 0.25 percent in December and listed a number of
policy tools it still has left to deploy if needed, but without
singling out a specific measure that it would consider next.  
    Another factor driving money market rates lower is that
excess liquidity - the amount of money in the market beyond what
banks need for their day-to-day operations - went up again to
199 billion euros, easing upward pressure.
    The three-month Euribor rate, traditionally
the main gauge of unsecured bank-to-bank lending, fell to 0.293
percent from 0.298 percent.
    The six-month Euribor rate inched down to
0.387 percent from 0.393 percent, while the shorter-term
one-week rate decreased to 0.181 percent from
0.190 percent. Overnight Eonia eased back to 0.176
percent from 0.206 percent on Wednesday.   
    
    Euribor rates are fixed daily by the Banking Federation of 
the European Union (FBE) shortly after 1000 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'  
    1 week       
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    1 month      
    2 month      
    3 month      
    6 month      
    9 month      
    1 year       

 (Reporting by Frankfurt newsroom)
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