Average rate at ECB weekly tender hits 6-month high
Strong demand pushed the cost of loans at the European Central Bank's regular weekly auction up to a six-month high, despite the ECB lending out an extra 50 billion euros. Tenders for U.S. dollar funds by the ECB and the Swiss National Bank, part of the latest round of coordinated global liquidity injections, were also massively oversubscribed. "There's strong demand from Europe going into the turn of the quarter," BNP Paribas interest rate strategist Nathalie Fillet said."But central banks are providing extra liquidity to stabilize conditions and liquidity should be ample. I don't expect much more tension from the current level."