Friday October 31, 2014 Search
Weather | Athens
19o C
12o C
News
Business
Comment
Life
Sports
Community
Survival Guide
Greek Edition
Eurozone interbank lending rate drops to lowest on record

Eurozone overnight interbank interest rates fell to their lowest levels on record on Tuesday, while a sharp rally in government bonds started to ease for some countries.

Strategists said money markets were continuing to adjust to last week's cut in the European Central Bank's main interest rates and its promise of fresh liquidity for banks, which should help short-term rates stable.

"The ECB has given very strong forward guidance for the first two years, and all its measures work to pin front-end rates," said Michael Michaelides, rates strategist at RBS.

Spot Eonia fixed at 0.053 per cent after markets closed on Monday, dropping below the previous historic low set in February 2013.

The European Central Bank cut all its main rates to record lows on Thursday, imposing for the first time negative interest rates on cash parked by banks at the ECB in an attempt to force them to increase lending to companies and consumers.

Other steps included the injection of around 170 billion euros into the banking system by halting tenders that withdrew funds spent on past government bond purchases, and a 400 billion euro ($544.86 billion) long-term loan scheme.

The tenders will be abandoned from next week, while the ultra-cheap four-year loans for banks - conditional on their lending to the smaller companies that are Europe's economic backbone - will be available from September.

Longer-term government bond markets saw a three-day rally since the ECB's meeting starting to peter out.

Greek bonds were the best performers, with 10-year yields dropping 15 bps to 5.58 percent, a level not seen since January 2010.

These new lows raise the prospect that Greece, which returned to markets in April for the first time since 2010, could soon issue more debt to help to stave off the need for a third bailout, Commerzbank said in a note on Tuesday.

Greece's government named economist Gikas Hardouvelis as finance minister in a cabinet reshuffle on Monday, signalling its intent to keep up a difficult reform drive demanded by the international lenders funding the country.

Elsewhere in the bloc, Italy's 10-year yields rose 4 bps to 2.74 percent from Monday's record low while Spain's dropped 2 bps to a new low of 2.57 percent.

Germany's 10-year yield - the benchmark for eurozone bonds - was unchanged at 1.38 percent. [Reuters]

ekathimerini.com , Tuesday June 10, 2014 (13:25)  
Power rates soared 60 pct in six years
NBG chairman sees risks to recovery
Greek consumers shift toward money saving
IMF could offer know-how in backup plan for Greece
A year after GD members shot dead, police have no leads
A year after two members of neofascist Golden Dawn were shot dead outside the party’s offices in Neo Iraklio, north of Athens, police sources admitted that they have no leads to the killers....
No new Manolada trial, court rules
The Supreme Court has decided that four men who stood trial earlier this year for shooting 28 migrant workers at a strawberry farm in Nea Manolada in the Peloponnese should not be retried. S...
Inside News
BASKETBALL
Obradovic watches Greens thrash his Fenerbahce
The second homecoming of former Panathinaikos coach Zeljko Obradovic, now at Fenerbahce, was not as emotional as last year’s, but it was certainly was the night of an emphatic triumph for th...
SOCCER
Berg returns to add spice to Panathinaikos´s Cup win
The second round of games for the group stage of the Greek Cup produced plenty of interesting games and results in midweek, but it still lags the upset potential that the knock-out stages of...
Inside Sports
COMMENTARY
The judiciary’s responsibility
The reform efforts over the past few years have begun to bear fruit. Greece has improved its standing in the World Bank’s Doing Business rankings, rising 48 positions from 2010 to 61st place...
COMMENTARY
Time is running out in Afghanistan
Thirteen years after the attacks on the Twin Towers and NATO's entry into the war in Afghanistan, things remain pretty much unchanged: Political instability and insecurity  reign in the Cent...
Inside Comment
SPONSORED LINK: FinanzNachrichten.de
SPONSORED LINK: BestPrice.gr
 RECENT NEWS
1. Obradovic watches Greens thrash his Fenerbahce
2. Berg returns to add spice to Panathinaikos´s Cup win
3. Power rates soared 60 pct in six years
4. NBG chairman sees risks to recovery
5. Greek consumers shift toward money saving
6. IMF could offer know-how in backup plan for Greece
more news
Today
This Week
1. Greek euro dilemma is back as minister predicts volatility
2. Students hijack university senate meeting
3. Clientelism belongs to the past, says Mitsotakis
4. European stocks tumble as banks decline after Enria’s comments
5. Over 1,500 buildings and vehicles damaged in flash floods
6. Civil servants to be investigated for transferring money abroad
Today
This Week
1. Austria’s creative bookkeeping beats Greece on secret debts
2. End of reason, end of humanity
3. Clean bill of health for Greek banks from stress tests
4. Samaras pledges action after flash floods in Athens
5. Eurobank, National Bank restructurings eliminate capital gap
6. Athens flood damage assessed, compensation payments to begin
   Find us ...
  ... on
Twitter
     ... on Facebook   
About us  |  Subscriptions  |  Advertising  |  Contact us  |  Athens Plus  |  RSS  |   
Copyright © 2014, H KAΘHMEPINH All Rights Reserved.