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Apparently no worries in this Tuesday 22 Feb report, with a contribution from an analyst we've see upthread:

MONEY MARKETS-LIQUIDITY PICTURE INCOMPLETE | Reuters

Banks opted to reduce their borrowing from the ECB at the central bank's seven-day tender, draining 17.5 billion euros. But markets awaited the results of tomorrow's three-month loan offering before changing their outlook on liquidity conditions.

The overnight interbank rate EONIA= -- which typically rises as excess liquidity dwindles -- was expected to continue its downward trend during the current maintenance period.

"Even if (ECB borrowing) would have fallen further I think the liquidity situation is abundant," said Commerzbank rate strategist Christoph Rieger. "Given that tomorrow we will have another 3-month LTRO with only 38 billion expiring ... I don't think overnight rates will increase on the back of these results.

Longer-term ECB loans worth 38 billion euros are due to expire this week, while banks have the opportunity to borrow as much as they need at a three-month tender on Wednesday.

Analysts said that with recent money market conditions proving volatile, the ability to lock in funding for longer duration at a stable rate had become more attractive and increased demand should see liquidity pumped back in to the system.

"tomorrow's three-month loan offering", which was yesterday, was fully taken up at €119.5bn.

"expected to continue its downward trend" - in fact EONIA went up again, from 0.497% on the 21st, to 0.531% on the 22nd, to 0.661% yesterday. Though that may only be an uptick.

by afew (afew(a in a circle)eurotrib_dot_com) on Thu Feb 24th, 2011 at 10:10:49 AM EST
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afew:
The overnight interbank rate EONIA= -- which typically rises as excess liquidity dwindles -- was expected to continue its downward trend during the current maintenance period.
Right, the maintenance periods are likely responsible for the heartbeat pattern. See ECB: Publication of the indicative calendars for the reserve maintenance periods in 2010 and 2011
The European Central Bank (ECB) is today publishing indicative calendars for the Eurosystem's reserve maintenance periods in 2010 and 2011. For the first time, these calendars are being published for the next two years, thereby following the practice adopted in setting the schedules for the meetings of the Governing Council of the ECB.


Keynesianism is intellectually hard, as evidenced by the inability of many trained economists to get it - Paul Krugman
by Carrie (migeru at eurotrib dot com) on Thu Feb 24th, 2011 at 11:31:18 AM EST
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