News Headline Summary

EONIA curve is steeper this morning, with Euribor strip down between 3-7ticks, as markets continue to price-out rate cuts by the ECB, as well as growing expectations that banks in Europe will start repaying 3y LTRO loans...

Analysis details (08:17)

- 3m cross-currency EURUSD basis swap trades a little heavy this morning and Schatz hit 9-month low.
- Yesterday, it was reported citing sources, that the ECB is said to weigh tougher loan collateral rules.
- Today's 3m Euribor fix exp. at 0.206/7% vs. Prev. 0.204%.
- Of note, Spanish banks are likely to start repaying this month some of the around EUR 260bln loans they took from the European Central Bank, as Spain's access to funds improves due to an easing of the Eurozone crisis.

18 Jan 2013 - 08:02 - Fixed Income - Source: RANsquawk

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