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Euribor vs €STR: which benchmark is driving money market returns?

Euribor vs €STR: which benchmark is driving money market returns?

13 October 2026 Solutions
Which benchmark is really driving money market returns

€STR and Euribor reflect different parts of the euro money market. This distinction can influence how treasury teams assess investment performance, compare cash strategies and evaluate the return available from extending beyond overnight liquidity. This paper examines what drives the spread between the benchmarks and the practical implications for managing liquidity and surplus cash.

The paper considers how treasury teams can:

  • Match benchmarks to cash objectives: distinguish between operational, reserve and strategic cash when selecting an appropriate reference point.
  • Interpret the Euribor-€STR spread: assess the additional return available from moving beyond overnight cash and understand the role of policy expectations, liquidity and credit premia.
  • Evaluate money market fund performance: understand why the same portfolio return can appear different depending on whether it is assessed against €STR or Euribor.

It also explains why benchmark selection should begin with the role, accessibility requirements and investment horizon of the cash, rather than treating €STR and Euribor as interchangeable measures.

 

 

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