Something fishy is up in the euro money markets. Not only is the benchmark overnight rate for euros on the interbank market, spiking, but demand for the European Central Bank’s cheap liquidity is suddenly taking off again. The Euro Overnight Interest Average , or Eonia, has risen to 0.35% as of Monday’s fixing, from only 0.14% a week ago, and less than 0.10% earlier in the month. That puts it back above the ECB’s key 0.25% refinancing rate, which determines the price of all the €672 billion in loans outstanding from the ECB. This is important because an “unwarranted” tightening of money-market rates is one of the two ... (full story)