Euribor money market rates fix at near 7-year high

FRANKFURT Dec 4 (Reuters) - Benchmark interbank lending rates in the euro zone rose to near seven-year highs on Tuesday, showing strong demand for liquidity early next year as well as around year-end.

Two-month Euribor EURIBOR2MD=, an average of daily quotes offered by banks to lend money to each other, rose to 4.856 percent, from 4.840 percent on Monday, the highest since the end of December 2000.

Three-month funding EURIBOR3MD= fixed at 4.858 percent from 4.839 percent, also the highest since late 2000, and one-month Euribor EURIBOR1MD= fixed at 4.848 percent, from 4.834 percent on Monday, the highest since April 2001.

Strong liquidity demand also showed in the ECB's regular refinancing auction, where 273 banks bid for more than 253 billion euros in weekly funds.

The ECB lent out 163 billion, 10 billion above its estimate of banks' liquidity needs, at a weighted average rate of 4.20 percent, the same as last week but above the 4.17 percent expected by dealers in a Reuters poll. (Reporting by Krista Hughes, editing by Mike Peacock)