European benchmark EONIA set at 0.469% today, the highest since the end of the first quarter.
EONIA rates usually rise at the end of the month but with three days of trading left in May, it’s too early to suspect month-end funding issues.
A similar spike in April peaked at 0.460% and ruffled some feathers but Draghi said it was the result of more banks (periphery banks) returning to the funding market. That’s likely the case again now but it still bears watching.
eonia
If anything, higher EONIA makes ECB action more likely.
