Euribor bank-to-bank lending rates rose on Friday ahead of the second round of banks' early crisis loan repayments to the European Central Bank. Markets moved quickly to factor in a steady rise in money market rates last week after the ECB said that banks would repay a larger than expected amount - 137 billion euros ($186 billion) - of the three-year loans they took about a year ago early.
In total, the ECB pumped more than 1 trillion euros into the banking system with two offerings of three-year loans, one in December 2011 and one in February 2012 as it tried to avert a credit crunch. On Friday, three-month Euribor rates, traditionally the main gauge of unsecured bank-to-bank lending, rose to 0.234 percent from 0.232 percent.
The six-month rate increased to 0.380 percent from 0.378 percent and the one-week rate edged higher to 0.084 percent from 0.083 percent. The overnight Eonia rate fell on Thursday to 0.080 percent from 0.081 percent. Dollar-priced bank-to-bank Euribor lending rates were lower, with three-month rates down at 0.47909 percent from 0.48000 percent and one-week rates falling to 0.32545 percent from 0.33000 percent.
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