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Euribor reverses trend and drops to three, six and 12 months, after Friday's highs

Euribor reverses trend and drops to three, six and 12 months, after Friday’s highs

Prices for three, six and 12 month Euribor this Monday reversed the uptrend of recent sessions, having reached their maximum since May 2020, September 2014 and August 2012 respectively.

The six-month Euribor rate, the most used in Portugal for housing loans and which entered positive territory on June 6, fell to 0.273%, down 0.018 points from 0.291% on Friday, the maximum since September 2014.

The six-month Euribor was negative for six years and seven months (between November 6, 2015 and June 3, 2022).

The price of 12-month Euribor fell today as well, for the first time since May 27, when it was set at 1.091%, down 0.033 points and against 1.124% on Friday, the maximum since August 2012.

After jumping on April 12 to 0.005%, and for the first time positive since February 5, 2016, Euribor for 12 months has been in positive territory since April 21.

Along the same lines, in three months, the Euribor index fell today, when it was set at -0.178%, 0.009 points lower than the previous session versus -0.169% on Friday, the maximum since May 2020.

Euribor began to rise further since February 4, after the European Central Bank (ECB) admitted that it may raise key interest rates this year due to high inflation in the euro area and this trend was reinforced with the beginning of the Russian invasion of Ukraine on February 24.

The evolution of interest rates on Euribor is closely related to increases or decreases in the key interest rates of the European Central Bank.

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Three, six and 12 month Euribor prices entered negative territory on April 21, 2015, November 6, 2015 and February 5, 2016 respectively.

Euribor prices for three, six and 12 months recorded all-time lows, respectively, at -0.605% on December 14, 2021, and -0.554% and -0.518% on December 20, 2021.

Euribor is determined by the average rates at which a group of 57 eurozone banks are willing to lend money to each other on the interbank market.

MC // CSJ

Lusa / end