Stable front-end Eonia rates (bp)

Resilient Eonia fixing, fragile long Eonia rates

LONDON | June 9, 2015 | By Giuseppe Maraffino (Barclays) | Eonia and Euribor fixings (as well as OIS rates up to 1 year) have been immune to the new round of high volatility. This is because they are more sensitive to liquidity conditions and the current abundant liquidity surplus at about EUR300bn has been an important protection.

eonia chart

ECB’s package aftertaste: Will money flow into the real economy?

MADRID | By J.P. Marín Arrese | Euphoria is back in the markets following the ECB substantive package. The prospect that money will flood the financial system has significantly reduced the rate differentials between the Eurozone peripheral and core countries. Squeezing the channel for overnight interbank lending has brought the Eonia to fresh lows. [Graph: Eonia’s evolution in the past year]