ECB refinancing at 3.3 percent low

The European Central Bank on Tuesday allocated 308 billion euros in 7-day refinancing agreements at a 3.3 percent marginal rate and above, in its weekly refinancing auciton that drained less money than expected from the money market.
Refinancing agreements for 321.5 billion euros expire on Wednesday, so a net 13.5 billion euros is flowing from the market. The ECB's liquidity forecast on Monday had amounted to 306 billion euros in funds needed.
The refinancing rates, however, were in line with a Reuters poll of money market dealers on Monday and the same as results seen at last week's auction. The weighted average was 3.31 percent.
The ECB accepted 47.08 percent of bids placed at the marginal rate. The lowest bid rate was 3.25 percent, which is the ECB's refinancing floor, and the highest rate 3.38 percent. The ECB said 343 banks bid for 385.96 billion euros of the refinancing funds this week.