Euro reference rates to remain low and stable

With the curves already pricing Eonia rates close to the depo facility on expectations of a further increase in the surplus, the room for reducing Eonia and Euribor fixings further is limited absent a new policy rates cut. 

"The liquidity expansion, which is expected to continue on the QE purchases and more TLTROs to be conducted until June 2016, will be crucial to keep liquidity conditions accommodative and money market reference rates (Eonia and Euribor fixings) stable at very low levels", says Barclays. 

In this respect, the recent increase in market volatility has not affected money market rates up to 1-year, contrary to longer maturities being affected due to greater sensitivity to EGB market flows.