Reuters - The ECB said in March it was going to reduce excess cash by cutting its allocations to 50 billion euros from 60 billion euros and this has happened. It is possible that on Thursday we will see a lower three-month Libor rate based on today's ECB allotment as the operation came soon before fixings. We see the continued falls in Libor and in the spread of Libor over OIS to be a sign of continued normalisation in the markets after last year's U.S. subprime mortgage market crisis.