Key 3-month Euribor rate dips closer towards 2 pct

Mon, Feb 2 2009, 10:37 GMT
http://www.afxnews.com

FRANKFURT, Feb 2 (Reuters) - The key three-month Euribor

bank-to-bank euro lending rate fell to a near 5-year low on

Monday, as it inched closer to the European Central Bank's

benchmark lending rate of 2 percent.

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 2.077 percent from 2.086 percent, the lowest level since May

2004.

The one-week rate dropped to 1.421 percent

from 1.433 percent, remaining well below the ECB's main rate of

2 percent.

Six-month Euribor dropped to 2.162 percent

from 2.176 percent, the lowest it has been since September 2005.

Overnight lending rates were quoted at a bid/ask

spread of 1.25/1.75 percent at 1018 GMT, compared with the

average on Friday of 1.273 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 Frankfurt newsroom; Editing by Victoria Main)

(frankfurt.newsroom@thomsonreuters.com; +49 (0)69 7565 1209)

The copying, republication or redistribution of Reuters News Content, including by framing or similar means, is expressly prohibited without the prior written consent of Thomson Reuters.

The copying, republication or redistribution of AFX News Content, including by framing or similar means, is expressly prohibited without the prior written consent of AFX News AFX News and AFX Financial News Logo are registered trademarks of AFX News Limited For more information and to contact AFX: www.afxnews.com and www.afxpress.com