The European Central Bank allocated 321.5 billion euros in 7-day refinancing agreements on Tuesday at 2.81 percent and above for a weighted average rate of 2.82 percent.
The rates were in line with the results of a Reuters poll of money market dealers on Monday, which forecast a marginal rate - the lowest at which the ECB allots funds - of 2.81 percent and a weighted average rate of 2.82 percent. At last week's auction, the marginal rate and the weighted average rate were 2.78 percent and 2.81 percent respectively.
Rates at the weekly tenders, the main source of central bank funds for euro area credit institutions, are an indication both of current liquidity conditions in the banking system and market expectations for official interest rates.
Refinancing agreements for 326 billion euros expire on Wednesday, so a net 4.5 billion euros is draining from the market. Separately, the ECB announced a quick tender on Tuesday with the aim of absorbing 8.5 billion euros in excess money.
The ECB said it had accepted 88.86 percent of bids placed at the marginal rate. The ECB has set the floor for bidding rates at 2.75 percent in the weekly tenders.
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