The euro hit session lows and bunds rallied Friday amid disappointment over the latest euro-zone bank repayment figures and grim growth forecasts for the region, while stocks remained buoyant following a strong German Ifo reading and heavy losses the previous session.
The euro dropped to a session low of $1.3157, while safe-haven March Bunds gained, after European banks signaled they will repay just 61 billion euros ($80.84 billion) of cheap loans they borrowed from the European Central Bank at its second three-year tender one year ago. This was far lower than market expectations for a figure closer to EUR130 billion and an indication that some banks still aren't ready to rely solely on the normal funding markets.
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