Perhaps it’s a final message to the ECB ahead of tomorrow’s meeting.

EONIA was set at 0.260% today compared to 0.108% yesterday. A couple weeks ago some alarm bells were going off as the benchmark borrowing rate shot up to 0.46%, which was the highest outside of quarter-end since 2011.



Goldman Sachs was out with a note today saying the ECB is unlikely to implement liquidity measures to deal with rising EONIA. They say Draghi will view the rise as part of the re-activiation and re-integration of the eurozone interbank market.

Still, they see a 40% chance of an ECB rate cut in June or July.

HSBC said today the ECB should consider cutting the refi rate because of volatility in EONIA and Euribor fixings.

Finally, Danske Bank predicted today’s rise in EONIA yesterday, noting that excess reserves were set to fall today after an ECB 7-day MRO.