Key Euribor rates continue downward trajectory

Wed, Feb 11 2009, 10:40 GMT
http://www.afxnews.com

FRANKFURT, Feb 11 (Reuters) - The key three-month Euribor

bank-to-bank euro lending rate fell further below the European

Central Bank's benchmark interest rate of 2 percent on

Wednesday.

The three-month Euribor rate, traditionally

the main gauge of the interbank euro lending and a mix of

interest rate expectations and banks' appetite for lending, fell

to 1.975 percent from 1.989 percent.

The one-week rate also remained well below the

ECB's main rate, dropping to 1.381 percent from 1.382 percent.

Six-month Euribor dropped as well, falling to

2.054 percent from 2.069 percent, the lowest it has been since

April 2004.

The ECB kept its benchmark interest rate on hold at 2

percent last week, but is expected to cut by 50 basis points in

March.

Overnight lending rates were quoted at a bid/ask

spread of 1.15/1.75 percent at 1017 GMT, compared with the

average on Tuesday of 1.291 percent.

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'

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 Marc Jones; Editing by Victoria Main)

(marc.jones@thomsonreuters.com; +49 (0)69 7565 1219; reuters messaging: marc.jones.reuters.com@reuters.net)

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