Euribor three-month rate heads into 2010 at record low

Benchmark Euribor three-month lending rates stayed at record lows on Thursday, suggesting the glut of cash pumped into money markets by the European Central Bank has helped see off possible year-end tensions. The three-month rate, traditionally the main gauge of interbank euro lending and a mix of interest rate expectations and banks' appetite for lending, remained at an all-time low of 0.700 percent.
Six-month Euribor rates edged up to 0.994 percent from 0.993 percent, while one-year funds continued their recent rise, lifting to 1.248 percent from 1.247 percent. With the fixing now covering the turn of the year, the shorter-term one-week rate eased back sharply to 0.377 percent from 0.389 percent. The European Central Bank kept official euro zone rates at a record low of 1.0 percent this month and announced how it plans to start unwinding the generous liquidity supplies it has used to fight the financial crisis, and have brought market rates to historic lows.