The London interbank offer rate on longer-term dollars fell to record lows on Friday (June 17th), pushed down by renewed optimism in the prospects for economic recovery.Data from the British Bankers' Association showed that the three-month Libor dropped to 0.505 per cent on Friday; the rate peaked at 4.81875 per cent on October 10th.The downward movement came as the earnings report season kicked off with comparatively strong performances from a number of major US corporations, although Citigroup and Bank of America fell short of analysts' expectations.Meanwhile, Deborah Cunningham, chief investment officer of money markets with Federated Investors in Pittsburgh, told Reuters that investors were keeping a close eye on CIT's attempts to avoid bankruptcy."The CIT story is on everyone's radar, but it has not affected the money market," she clarified.Although talks to secure federal bailout funding failed last week, the Wall Street Journal has reported that CIT will announce tomorrow (June 21st) that it has secured a $3 billion (£182 billion) funding deal from bondholders.