ECB: 2024 Euro Money Market Survey: Summary By Segment (2/2)
May-01 10:34
Summaring the key developments in Euro money markets by sector:
- Secured:
- “The secured segment, with daily turnover averaging €997 billion in the fourth quarter of 2024, grew by 41% over two years and makes up 30% of the total outstanding money market volume”.
- “87% of repo turnover occurs in the one-day maturity bucket. Since 2017, 35% of the outstanding amount has been in transactions with very short maturities, 30% in medium maturities and 35% in longer maturities”.
- Unsecured:
- “Averaging daily turnover of €233 billion in the fourth quarter of 2024, the segment grew 28% and makes up 9% of total stock".
- “Borrowing activity rose across all counterparty sectors, whereas the volume of lending to banks declined”.
- “86% of unsecured turnover is conducted in the overnight maturity bucket. Since 2017, the share of outstanding transactions with maturities from one week to three months has increased significantly from 40% to 60%”.
- Short-term Securities:
- “Short-term securities (STS) issuance in the primary market averaged €8 billion daily in the fourth quarter of 2024, accounting for 8% of the total outstanding money market volume”.
- FX Swaps:
- “FX swaps, averaging daily turnover of €286 billion in the fourth quarter of 2024, remained the biggest segment, with 54% of the total outstanding volume”
- “FX swap trades involving the US dollar made up about 80% of the daily volume”…“Over the past two years, the premium for borrowing US dollars against euro in FX swaps has declined”.
- “Interbank transactions dominate FX swap market activity. In transactions where MMSR reporting banks provide US dollars, 69% of the volume is traded with other banks”.
- “In total, 62% of FX swap turnover occurs in the one-day maturity bucket, although there has been a shift towards slightly longer maturities over the past two years”
- OIS:
- “The OIS segment grew by 101% over two years, ranking third among money market derivatives with daily turnover of €228 billion”.
- “As much as 78% of OIS turnover involved forward contracts”.
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ESM ISSUANCE: 3-Month ESM-Bill
Apr-01 10:32
| Type | 3-month bills |
| Maturity | Jul 3, 2025 |
| Amount | E1.092bln |
| Target | E1.1bln |
| Previous | E1.083bln |
| Avg yield | 2.262% |
| Previous | 2.355% |
| Bid-to-cover | 2.39x |
| Previous | 2.81x |
| Previous date | Mar 04, 2025 |
OUTLOOK: Price Signal Summary - Trend Needle IN GBPUSD Points North
Apr-01 10:31
- In FX, the trend condition in EURUSD is bullish and recent weakness appears to have been a correction. MA studies are in a bull-mode position highlighting a dominant uptrend. 1.0733, the Mar 27 low, marks a key near-term support. A move through it would confirm a clear breach of the 20-day EMA and signal scope for a deeper correction towards the 50-day EMA at 1.0656. Key resistance and the bull trigger is 1.0955, the Mar 18 high.
- GBPUSD is in consolidation mode and importantly for bulls, the pair continues to trade closer to its recent highs and above last week’s lows. MA studies are in a bull-mode position highlighting a dominant uptrend. Support at the 20-day EMA, at 1.2887, is intact. A breach of 1.3015, the Mar 20 high and bull trigger, would open 1.3048, the Nov 6 2024 high. A clear break of the 20-day EMA is required to instead signal scope for a deeper correction.
- USDJPY is trading below last week’s high. The primary trend direction is unchanged, it remains down and the latest recovery is considered corrective. A key short-term resistance around the 50-day EMA - at 150.86 - is intact. A clear break of this EMA would undermine the bearish theme and signal scope for a stronger rally towards 152.70, a 50.0% retracement of the Jan 10 - Mar 11 bear leg. The first key support to watch is 148.18, the Mar 20 low. A breach would be bearish.
MNI: REMINDER: Livestream MNI Connect With BOE's Breeden On Apr 10
Apr-01 10:30
You are invited to listen to a Livestreamed MNI Connect Video Conference with BOE's Sarah Breeden.
Details below:
- TOPIC OF DISCUSSION: UK Economic and Financial Stability Prospects
- DATE: Thursday, 10 Apr 2025
- TIME: 14:00 - 15:30 BST
- This event will be run as a Zoom Webinar and is a public, on-the-record event.
To register please go to: MNI Webcast Registration
