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Key Euribor rates edge towards 11-month highs

Published 07/13/2010, 05:27 AM
Updated 07/13/2010, 05:32 AM

FRANKFURT, July 13 (Reuters) - Key euro-priced bank-to-bank lending rates hit their highest levels in almost 11 months on Tuesday, pushed up by a sharp drop in excess ECB cash in money markets and ongoing euro zone debt crisis jitters.

The three-month Euribor rate -- traditionally the main gauge of interbank euro lending and a mix of interest rate expectations and banks' appetite for lending -- climbed to 0.835 percent from 0.827 percent the previous day, the highest level since late August.

Shorter-term one-week rates rose to 0.504 percent from 0.498 percent, six-month rates increased to 1.090 percent from 1.086 percent and one-year rates inched up to 1.358 percent from 1.356 percent.

The overall level of excess cash in money markets has more than halved since banks paid back 442 billion euros worth of one-year loans to the European Central Bank at the start of the month.

Interbank rates have also been pushed higher on fears that some European banks may run into trouble in the wake of the euro zone debt crisis and soon-to-be-published stress tests.

Euribor rates are fixed daily by the Banking Federation of the European Union (FBE) shortly after 0900 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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