Despite the disasters in Japan and the surge in tensions in parts of the Middle East, recent ECB policymaker comments have cemented expectations that the bank will raise rates, which have been frozen at a record low 1 percent since May 2009, in April.
The three-month Euribor rate -- traditionally the main gauge of unsecured interbank euro lending and a mix of interest rate expectations and banks' appetite for lending -- rose to 1.231 percent on Wednesday, the highest since June 2009, and up from 1.219 percent on Tuesday.
Six-month rates climbed to 1.541 percent from 1.531 percent while longer-term 12-month rates jumped to 1.992 percent from 1.980 percent.
Shorter-term one-week rates bucked the trend dropping to 0.807 percent from 0.813 percent after EONIA overnight interest rates fixed lower at 0.612 percent on Tuesday.
Excess liquidity in money market increased to around 23 billion euros according to Reuters calculations.
Having taken 100 billion euros in the ECB's weekly handout of 7-day funding on Tuesday banks, around 11 billion more than last week, banks took 130 billion in 3-month funding on Wednesday, well down on the 150 billion euros worth of equivilent expiring funding taken back in December.
The central bank left euro zone interest rates on hold at a record low 1 percent earlier this month but flagged plans to raise them next month, wrongfooting markets which until then had expected the first rise much later in the year.
The ECB also left all its liquidity operations at full allotment for at least another three months, putting its exit strategy from stimulus measures on hold for the second quarter running.
A euro zone central bank source told Reuters on Saturday that the ECB was putting the finishing touches on a new facility to ensure troubled banks have access to medium-term liquidity. The move could help the ECB to return its regular lending operations back to their pre-crisis auction style and wind down its policy of providing banks with all the cash they request.
It is already back to its pre-crisis range of funding. Three-month loans are once again the longest maturity on offer and banks have now paid back all the six-month and 12-month loans the ECB injected during the turmoil.
Euribor rates are fixed daily by the Banking Federation of the European Union (FBE) shortly after 0900 GMT.