LONDON, Feb 22 (Reuters) - 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.