Eonia is interesting once again with the......>

EONIA: Eonia is interesting once again with the index closing at -0.319%, which

is 4bp above where it has largely traded since June. Someone out there is

lending to a bank of lower credit quality.

- Henry Skeoch and Giuseppe Maraffino at Barclays believe "Such transactions

might remain at least until the settlement of today's MRO. Therefore, the ECB

weekly operation is in focus as those banks that are borrowing from EONIA panel

banks via "outlier transactions" might switch to the ECB's weekly borrowing".

- If this high eonia fixing issue does not clear up today, Barclays suggest this

could be a sign that "outlier transactions" are likely to persist and thus push

the eonia yield curve upwards.