NO BUNDESBANK POLICY CHANGES EXPECTED THURSDAY

  The Bundesbank is unlikely to change
  its credit policies at its central bank council meeting on
  Thursday, as exchange rates and short-term interest rates have
  stabilized over the past few weeks, money market dealers said.
      Attention in the money market is focused on tomorrow's
  tender for a securities repurchase pact, from which funds will
  be credited on Thursday, when an earlier pact expires, draining
  16 billion marks from the system.
      The tender was announced last Friday, because carnival
  festivities closed banks in Duesseldorf yesterday, and will
  close banks here this afternoon.
      Because of the disruption to business from carnival,
  minimum reserve figures for the start of the month are
  unrealistic, making it difficult for banks to assess their
  needs at the tender.
      Dealers said the Bundesbank would want to inject enough
  liquidity in this week's pact to keep short-term rates down.
      But because of uncertainty about banks' current holdings,
  the Bundesbank may well allocate less than 16 billion marks
  this week, and top it up if necessary at next week's tender.
      "I would not be surprised if the Bundesbank cuts the amount
  a little, to say 14 or 15 billion marks," one dealer said.
      "They would then stock it up at the next tender when the
  need is clearer," he added.
      An earlier pact expires next week, draining 8.5 billion
  marks from the system. Banks also face a heavy but temporary
  drain this month from a major tax deadline for customers.
      Banks held 52.0 billion marks on February 27 at the
  Bundesbank, averaging 51.0 billion over the whole month, just
  clear of the 50.5 billion February reserve requirement.
      Call money traded today at 3.85/95 pct, up from 3.80/90
  yesterday.
  

