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Euribor bank-to-bank rates hit new 20-mth low
March 20, 2012 / 10:24 AM / 5 years ago

Euribor bank-to-bank rates hit new 20-mth low

FRANKFURT, March 20 (Reuters) - Euro zone bank-to-bank
lending rates hit fresh 20-month lows on Tuesday as the wave of
liquidity the European Central Bank has fed banks in recent
months weighed heavily on the money market.	
    Euribor rates have dropped by over a third as a result of
the 1 trillion euros in 3-year loans the ECB has poured into
financial markets since December. Banks are parking much of the
money back at the ECB, with overnight deposits standing at 765
billion. 	
    Three-month Euribor rates, traditionally the
main gauge of unsecured interbank euro lending and a mix of
interest rate expectations and banks' appetite for lending, fell
to 0.832 percent on Tuesday from 0.842 the previous day, the
lowest level since July 2010.	
    Rates in longer-term maturities also dropped. Six-month
rates fell to 1.136 percent from 1.146 percent and
12-month rates dropped to 1.474 percent from 1.485
percent.	
    One-week rates, the most heavily influenced by
the level of cash in the system, dipped to 0.317 percent from
0.318 percent. Overnight rates eased to 0.359 percent
from 0.361 percent.	
    Despite the sharp fall in interbank rates over the last few
months, the benchmark rate remains well above the euro-era low
of 0.634 percent they hit in early 2010. 	
    Futures markets see further falls, however, on expectations
the ECB will keep limit free liquidity available for the
foreseeable future and official interest rates at their current
record low of 1 percent. 	
    	
    Euribor rates are fixed daily by the Banking Federation of 
the European Union (FBE) shortly after 1000 GMT.	
    * 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'  	
    1 week       	
    2 week       	
    3 week       	
    1 month      	
    2 month      	
    3 month      	
    4 month      	
    5 month      	
    6 month      	
    7 month      	
    8 month      	
    9 month      	
    10 month    	
    11 month    	
    1 year       	
	
 (Reporting by Frankfurt newsroom)

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