ECB auction eases worries and U
NEW YORK (Reuters) Key European loan rates mostly dipped on our web page Canada Goose Outlet https://www.canadagooseoutlete.com Thursday after smaller than expected demand at another auction of short term loans from the European Central Bank eased some worries over the continent banking system. commercial paper Canada Goose sale market was steady on the week, suggesting adequate dollar credits for banks and companies in canada goose black friday sale need of operating cash, analysts said.
Traders focused on the demand for canada goose the ECB tender of 6 day funds, which coincided with the maturity of canada goose clearance the one year emergency loans canada goose uk outlet it gave to uk canada goose outlet European banks.
The bidding for these Canada Goose Jackets short term loans, canada goose uk black friday totaling 111 billion euros, was less than expected, but it did not dispel the perception that euro zone banks could struggle canada goose store to replace the Canada Goose Outlet one year ECB loans they just repaid, analysts said.
funding pressure is significant but not dangerous, said Guy LeBas, chief fixed income strategist at Janney buy canada goose jacket Montgomery Scott in Philadelphia.
Financial markets had been worried that a large roll over into shorter dated funds would show banks were unable to fund themselves anywhere apart from at the ECB.
Those fears were partially eased on Wednesday at another operation at which banks borrowed less three month funds than expected.
Spot and forward Eonia rates edged lower, reversing some of Wednesday moves as banks topped up their funding requirement on Thursday at a six day operation, leaving a net liquidity drain of cheap Canada Goose around 200 billion euros.
The six day canada goose coats tender seemed to ensure overnight lending rates would stay near the 0.35 percent level canada goose uk shop seen in recent months, analysts said.
Benchmark three Canada Goose Online month euro Libor rates, however, rose over canada goose coats on sale a basis point to 0.71750 percent a sign of expectations banks will try to borrow more on the unsecured market Canada Goose Coats On Sale to replace the ECB money that has been drained.
Traders say it is still the case and a measure of the continuing malfunctioning of the interbank market dating back to 2008 that in reality only top tier banks can obtain funds this way.
A BRIDGE NOT FAR ENOUGH The ECB operations this week cheap canada goose uk are seen as a bridge for canada goose factory sale European banks to transition from the long term emergency support the ECB just ended.
makes life easier for the treasurers of these banks, Janney LeBas said.
The end of ECB one year loan program comes at a Canada Goose online time when data point to a slowdown in the global economic recovery and uncertainties over Europe sovereign debt problem persist.
Analysts have cited these developments as crimping canada goose clearance sale European banks ability to raise funds at home and aboard.
The outstanding canadian goose jacket amount uk canada goose of European bank commercial paper in the United States has contracted this year, partly on concerns over the credit worthiness of that region Canada Goose Parka banks.
has occurred in that (CP) space is that these issuers are being shunned a buy canada goose jacket cheap bit (but) not in any material way, said Tony Crescenzi, portfolio manager at Pacific Investment Management Co in Newport Beach, California.
Additional reporting by Kirsten Donovan in London; graphic by Scott Barber in London, Editing by Chizu Nomiyama.
