LONDON Jan 25 German debt prices fell while
banking stocks and the euro rose on Friday after the ECB said
banks planned to pay back 137 billion euros of its long term
loans -- more than traders had expected.
Banks will repay the European Central Bank 137.159 billion
euros in three-year loans next week, opting to hand back the
money early, in a sign at least parts of the financial system
are returning to health.
Bund futures fell around 20 ticks from levels seen
before the announcement to a session low of 142.62 while two-
year German yields extended an earlier rise to
trade 5 basis points higher on the day at 0.23 percent.
The euro rose to a fresh 11-month high of $1.3461, up
0.5 percent on the day from $1.3419 while the Euro STOXX index
of euro zone banking shares extended gains and was
trading 1 percent higher.