ECB overnight lending up to 20-month high

FIGURES released yesterday show that use of the European Central Bank’s overnight lending facility spiked to a twenty-month high at €15.8bn versus a usual amount of below €1bn. The spike prompted fears that a Eurozone bank could be encountering trouble as the ECB attempts to withdraw emergency liquidity, although some analysts blamed it on a “fat finger” error.

Meanwhile, the yield on Portuguese five-year bonds jumped to an all-time high of 7.13 per cent yesterday after Cabinet Minister Pedro Silva Pereira urged the Eurozone to reach a solution quickly to avoid further market turbulence.