Money markets us rates steady after european voting

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* Short-term dollar borrowing costs little changed * Safe-haven bids after French, Greek elections short-lived * No dollar, sterling Libor fixings due to UK holiday By Richard Leong NEW YORK, May 7 U.S. short-term borrowing costs for banks and Wall Street held steady o n Monday even after French and Greek voters ousted incumbent government leaders this weekend, stoking worries about a unified leadership to curb the region's debt crisis. Nervous investors briefly parked cash into Treasury bills and overnight repurchase agreements, driving their interest rates lower on concerns Greece under a new ruling party might not follow through on government budget cuts to obtain a second bailout, analysts and investors said. A shift into these perceived cash equivalents also came on the heels of Socialist Francois Hollande's victory over conservative French President Nicolas Sarkozy. Hollande pledged to rein in the region's drive toward austerity, a policy of Sarkozy and German Chancellor Angela Merkel. Hollande promised to focus on restoring growth. Interest rates on Treasury bills and overnight repos secured by U.S. government debt retraced their initial decline, as worries about the consequences for the euro zone faded and investors moved money back into stocks, the euro and other riskier assets, investors and analysts said. "There was a knee-jerk, flight-to-quality reaction on the elections and growth worries here, in Europe and China," said Bret Barker, portfolio manager at TCW Group in Los Angeles, which manages $128 billion in assets. "Things have kind of calmed down." Fading safe-haven bids might have affected Monday's two T-bill auctions. The U.S. Treasury Department's combined $58 billion sale of three-month and six-month securities fetched fewer bids than a week earlier. The interest rates on these new three-month and six-month bills came in at 0.090 percent and 0.145 percent, respectively, little changed from last week. In repo trading, bids on overnight loans for banks and Wall Street dealers were last quoted at 0.25 percent, compared with 0.26 percent late on Friday. In the interbank market, there were no fixings for sterling and dollar London interbank offered rates on Monday due to a British bank holiday. Libor on three-month dollars was fixed at 0.46585 percent on Friday. It has not changed in eight sessions. Three-month euro Libor fell again to 0.61821 percent on Monday, the lowest level since May 4, 2010 when it was fixed at 0.61500 percent.