GERMAN CALL MONEY EASES AFTER LIQUIDITY INJECTION

  Call money eased to 3.75/80 pct from
  3.80/85 yesterday following a net injection of 6.7 billion
  marks at a rate of 3.80 pct in fresh funds from this week's
  securities repurchase agreement, dealers said.
      But rates were expected to rise toward the end of the week.
      A major tax payment period by banks on behalf of customers,
  payments for the federal railways loan stock and repayments of
  mark liabilities incurred by foreign central banks with the
  Bundesbank in the framework of the European Monetary System
  (EMS) are likely to significantly burden the system. Banks
  built up minimum reserves today, ahead of the expected outflow.
      The Bundesbank credited banks with a gross 15.2 billion
  marks, but some 8.5 billion left the system at the same time as
  an earlier securities repurchase pact matured.
      Dealers estimated the EMS related outflow as high as six
  billion marks.
      The Bundesbank declined to comment, but a spokesman said
  yesterday although the funds now due may be allowed to roll
  over, the possibility that other central banks may choose to
  redeem them meant a net infusion was needed.
      Dealers forecast tax payments of 25 and 30 billion marks,
  but much of it is expected to burden the system only next week.
      Banks' minimum reserve holdings at the Bundesbank totalled
  53.6 billion marks on Monday, averaging 54.0 billion over the
  first nine days of March.
      Dealers said although the figure was well above an expected
  requirement of around 51 billion marks, the expected outflow of
  funds was so large that banks might find it difficult to meet
  the requirement toward the end of March.
      No securities repurchase agreement is expiring next week,
  but dealers said the Bundesbank could offer fresh liquidity if
  conditions significantly tighten. "The Bundesbank wants to keep
  rates around 3.80 pct," one dealer said.
  

