Euribor vs €STR

Guide · 12-month Euribor · Euribor.site

€STR is the euro short-term rate. It describes overnight unsecured borrowing in euros and is published by the ECB from transaction data. Eonia, the old overnight index, was discontinued; €STR is the successor in that slot.

12-month Euribor describes a one-year term. It embeds a path of expected overnight rates plus term premia and credit colour from the panel. That is why it can sit well away from €STR even on a quiet week.

After 2014–2021, when policy rates sat at the floor and Euribor 12m went negative, both overnight and term euro rates lived in unusual territory. When policy tightened in 2022, overnight jumped first in spirit; term Euribor repriced the year ahead, sometimes faster than a casual reader expected.

Product design explains persistence. A household wants a number that can be averaged over a month and locked for a review year. Overnight compounded in arrears is a different operational machine (lookbacks, observation shifts). Europe kept a large stock of term-Euribor loans because that machine was already in the notary’s template.

This first release does not scrape a parallel €STR time series into the same chart. Two unofficial tapes on one canvas look professional and go wrong on holidays. Compare official ECB €STR pages with our 12-month table when you need both.

ECB: €STR statistical pages. Our fixing: 12-month today.

When a professional mixes them on purpose

A curve trader looks at €STR OIS against Euribor term to read basis. That is a specialist screen. A borrower reading a reset letter does not need that basis to check whether the average plus spread matches the coupon.

Some new facilities are written on €STR plus a margin with compounding. If your term sheet says €STR, this website’s 12-month hero number is the wrong input. If it says Euribor 12m, €STR is the wrong input. The word on the page wins.

Also read Euribor vs ECB policy rates so the deposit facility is not pasted into a mortgage cell.

If you are writing an internal memo, keep a three-column stub: policy rate, €STR, Euribor 12m monthly average. Update the third column from this site or EMMI, the second from the ECB, the first from the last decision statement. The memo stays readable six months later.

Fallback language in new contracts sometimes points to €STR if Euribor were ever unusable. That clause is insurance. It is not a daily switch. Do not pre-empt it because a blog prefers overnight purity.

Field guide: picking the right euro rate in a sentence

Overnight cash, payments plumbing, successor to Eonia: say €STR and point at the ECB.

One-year household floating loan, monthly average, review letter: say 12-month Euribor and point at EMMI or this table.

“Euro rates” with no noun: incomplete. Ask the speaker to finish the sentence before you change a spreadsheet.

Wholesale fallback riders that mention €STR if Euribor failed are not a daily toggle. They are disaster language. Do not live inside disaster language on a normal Tuesday.

If you must show both on a slide, use two charts with two sources and two timestamps. A single blended line labelled “euro rate” teaches the next intern the wrong instinct.

A useful ritual after an ECB meeting: write €STR move in one box, 12-month Euribor daily move in another, monthly average unchanged until month-end in a third. Three boxes kill most Slack arguments.

Eonia nostalgia still appears in old term sheets. If you see Eonia in a 2012 facility that was never novated, that is a legal review, not a chart review. This site will not resurrect Eonia prints.

Travel metaphor: €STR is the temperature this hour. 12-month Euribor is the season’s forecast priced into a one-year loan between banks. You dress for both. You do not wear the forecast as a thermometer.

Think of €STR as the local train and 12-month Euribor as the booked yearly pass priced off expected local trains. Both are rail. They are not the same ticket. Punching the pass at the overnight gate will confuse the inspector — and your spreadsheet.

If a term sheet lists “Euribor or €STR at lender’s option,” that is a negotiation item, not a trivia fact. Get the option in writing before you celebrate a lower headline overnight rate.

Keep a paper strip next to the screen: tenor, month, average, spread, payment. Every extra tab you open without filling that strip is entertainment. Fill the strip first, then read commentary. The strip is the product; the commentary is optional.

When in doubt, open the history chart from January 1999 and sit with it for a minute. Long context lowers the temperature of any single print, including the one in the hero box today.

Basis between €STR and 12-month Euribor is a professional object. If you do not trade that basis, you do not need a live basis widget. You need to know which name is printed on the loan. Curiosity about basis can wait until the letter is checked.

Closed-end question for any advisor: “Does this cashflow reset on Euribor 12-month monthly average or on compounded €STR?” A long answer that starts with history of Eonia is a dodge. Ask again.

Signpost on this domain: overnight euro → ECB €STR pages. One-year euro household average → tables here. Policy decision → ECB statement. Three signposts, three URLs, fewer bruised weekends.

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