The Bundesbank accepted bids for 6.5billion marks at today's tender for a 28-day securities
repurchase pact at a rate of 3.80 pct, a central bank spokesman
said.
    Banks, which bid for a total 8.6 billion marks liquidity,
will be credited with the funds allocated tomorrow and must buy
back securities pledged on April 22.
    The allocation was in line with market expectations the
Bundesbank would provide more than the 3.4 billion marks
draining from this week as an earlier facility expires.
    Call money fell to 3.60/70 pct ahead of the allocation from
3.75/85 pct yesterday, dealers said.
    The excess allocation compensates for public funds leaving
the system which the Bundesbank added last week via
government-owned banks.
    However major tax payments by banks on behalf of customers
drew to a close this week, lessening the need for liquidity.
    The call money declines surprised some dealers, who
speculated it was because the Bundesbank disbursed further
government funds today. However, most said this had not
occurred.
    Banks were well stocked with liquidity, having 47.1 billion
marks in minimum reserves at the Bundesbank on Friday, up from
49.9 billion on Thursday. Average daily reserves over the first
20 days of the month fell to 52.6 billion from 53.1 billion.
For all of March, banks would be required to hold net daily
average reserves of 50.7 billion marks, dealers said.
 REUTER
