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Why are unsecured term deposits in EUR yielding lower than a simple overnight deposit at the ECB ? Isn't it supposed to be the opposite ?

The 3 month Euribor just broke -0,50% a few days ago, why was it so low for so long ?

Source : https://sdw.ecb.europa.eu/quickview.do?SERIES_KEY=143.FM.M.U2.EUR.RT.MM.EURIBOR3MD_.HSTA

I assume there must a quota on the ECB deposit facility ? What stops eurozone banks from using the deposit facility to a greater extent if that isn't the case ?

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  • $\begingroup$ The basis seems pretty small though. One possible reason is that not all institutions have access to the deposit facility. $\endgroup$
    – fes
    Mar 22, 2022 at 14:13

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