Downside risks to economic growth in the euro zone have intensified, Trichet said during a news conference after the bank decided to keep interest rates steady at 1.5 percent.

"There was some expectation of a rate cut, which didn't come, or a relatively softer tone, but he hasn't changed his tone, and we have the same message as in September," said Achilleas Georgolopoulos, strategist at Lloyds Bank in London.

Two-year German government bond yields rallied to a session high of 0.57 percent, up 6.8 basis points on the day. It was little changed prior to the news conference.

December Euribor futures fell across the 2011/12 curve, pushing implied rates higher, with the December 2011 contract reaching 98.69 compared to 98.75 before the news conference.

Copyright Reuters, 2011