ECB Allots $40B in Three-Day Tender, Euro-Dollar (EURUSD) Gives Back Overnight Gains
ECB alloted USD 40 bln in 3 day tender, at a marginal rate of 3.50%. Bids amounted to USD 96.7 bln and 4.8% were alloted at the marginal rate. There was no additional EUR tender today and with yesterday's EUR 25 bln expiring interbank o-n rates have nudged higher again during the morning and are currently around 4.325%, clearly above the minimum bid rate of 4.25%, but slightly below yesterday's average overnight rate (EONIA) of 4.3740%. At the same time the European Banking Federation reported that the one week rate rose to 4.55% today, the highest level since December last year. Meanwhile, the EURUSD gave back overnight gains to hold below 1.4215 after peaking to an intraday high of 1.4256.