LONDON Feb 22 Money market rates and the euro
fell on Friday after the European Central Bank announced banks
would make 62.8 billion euros worth of early repayments of
three-year banking sector loans.
The repayment came in below the 130 billion euro Reuters
poll consensus and means the level of surplus liquidity in the
banking system, currently keeping interbank lending rates low,
was likely to drain slower than expected.
Two-year Eonia rates fell and Euribor futures rose -- both signals of lower rate expectations. German
bond yields also fell across the curve.
The euro fell to a six-week low of $1.3157 from
around $1.3210 beforehand and down 0.1 percent on the day.