Tuesday December 2, 10:40 AM
Euribor 3-month rate drifts to 22-month low
FRANKFURT, Dec 2 (Reuters) - Euribor euro bank-to-bank
lending rates drifted lower on Tuesday, with the key three-month
rate hitting a new 22-month low.
The three-month Euribor rate, traditionally
seen as the main gauge of the bank-to-bank euro lending market,
fell to 3.786 percent from 3.816 percent, the lowest since the
start of February 2007.
The one-week equivalent fell to 3.786 percent
from 3.132 percent, a level not seen since early October 2006.
The six-month rate, which had risen to 14-year
highs in early October, fell to 3.828 percent from 3.859 percent
on Monday, the lowest since mid-December 2006.
European Central Bank interest rate and lending rule changes
have helped bring bank-to-bank rates down from historic highs
but the spreads between official and interbank lending rates are
still stretched and volumes of deals are low as money market
tensions refuse to go away.
The ECB's main interest rate for one-week lending to banks
is currently 3.25 percent after two 50 basis point cuts since
October.
It has also scrapped limits on the amount banks can borrow
at its auctions and lowered the quality of collateral it accepts
to make it easier for banks to borrow from its cash pools.
Euribor rates are fixed daily by the Banking Federation of
the European Union (FBE) shortly after 1000 GMT.
Three-month rates form a benchmark for much short-term
commercial lending in Europe, and one-week rates give an
indication of banks' very short term financing conditions.
* For a table of the latest Euribor fixings for terms of one
week to one year, double click on
* For a table of the previous day's fixings of EONIA swap
rates, which show market expectations for future overnight
lending rates, double click on
* For graphs of historic Euribor and EONIA swap rates, right
click on the links in angle brackets below, and select 'Related
Graph'
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