Eonia volatility worries dealers
Banks increased their take-up of one week ECB funding by Eu48.1bn on Tuesday, prompting analysts to forecast a drop in the European overnight borrowing rate, which rose sharply towards the end of January, fixing at 1.313% on Monday. Overnight rates usually spike at month-end, but dealers are worried about the particularly high levels this time around. Read EuroWeek on Friday to find out how rates volatility is affecting trading.
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