BUNDESBANK ALLOCATES 6.1 BILLION MARKS IN TENDERThe Bundesbank accepted bids for 6.1 billion marks at today's tender for a 28-day securities repurchase pact at a fixed rate of 3.80 pct, a central bank spokesman said
    Banks, which bid for a total 12.2 billion marks liquidity, will be credited with the funds allocated today and must buy back securities pledged on May 6
    Some 14.9 billion marks will drain from the market today as an earlier pact expires, so the Bundesbank is effectively withdrawing a net 8.1 billion marks from the market with today's allocation
    A Bundesbank spokesman said in answer to enquiries that the withdrawal of funds did not reflect a tightening of credit policy, but was to be seen in the context of plentiful liquidity in the banking system
    Banks held an average 59.3 billion marks at the Bundesbank over the first six days of the month, well clear of the likely April minimum reserve requirement of 51 billion marks
    The Bundesbank spokesman noted that by bidding only 12.2 billion marks, below the outgoing 14.9 billion, banks themselves had shown they felt they had plenty of liquidity
    Dealers said the Bundesbank is keen to prevent too much liquidity accruing in the market, as that would blunt the effectiveness of the security repurchase agreement, its main open-market instrument for steering market interest rates
Two further pacts are likely this month over the next two weeks
    The Bundesbank is currently steering call money between 3.6 and 3.8 pct, although short-term fluctuations outside that range are possible, dealers said
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