AFX: Three-month Euribor rate lifts from all-time low
FRANKFURT, Oct 26 (Reuters) - The three-month Euribor bank-to-bank lending rate rose on Monday, inching off of an all-time low, while excess liquidity from the European Central Bank continued to put downward pressure on longer-term rates.
The three-month rate, traditionally the main gauge of interbank euro lending and a mix of interest rate expectations and banks' appetite for lending, rose to 0.731 percent from Friday's record low of 0.730 percent.
The shorter-term one-week rate also rose to 0.352 percent from 0.351 percent, while longer-term rates fell.
The six-month rate dropped to 1.017 percent from 1.019 percent and the one-year rate fell to 1.251 percent from 1.254 percent.
Interbank rates have experienced a year-long descent due to the ECB's rapid run of official interest rate cuts and its massive injections of liquidity, although recent weeks have pointed to a reduction in excess cash.
The ECB pumped a smaller-than-expected 75 billion euros into money markets at its latest one-year refinancing operation. (For story please click). A further 35.5 billion euros dropped out of the system recently after demand shrivelled for three and six-month ECB funds.
The ECB kept interest rates at record low of 1.0 percent this month as expected, and economists and financial markets expect the next move to be a hike.
The ECB also left its deposit rate at 0.25 percent. The rate has acted as a floor for money market rates in recent months due to the massive amounts of excess liquidity the ECB has pumped into the banking system over the financial crisis.
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'
