BUNDESBANK ALLOCATES 6.5 BILLION MARKS IN TENDER

  The Bundesbank accepted bids for 6.5
  billion 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.
  

