LONDON Feb 1 German Bund futures rose and the
euro fell on Friday after the ECB said 3.5 billion euros of its
three year banking loans would be repaid next week -- a figure
well below market expectations.
Banks will pay back another 3.5 billion euros next week of
the emergency 3-year loans they took from the European Central
Bank a year ago, further deflating the ECB's balance sheet after
they paid back a whopping 137 billion euros this week.
A Reuters poll earlier this week showed money market traders
had been expecting 20 billion euros to be repaid.
The Bund future rose to 141.87, still 3 ticks lower
on the day but up versus 141.66 seen before the release of the
data. Euribor futures also erased losses and turned
The euro fell to $1.3640 from $1.3667 before the ECB
announcement while the FTSEurofirst 300 index of
pan-European stocks trimmed gains to trade 0.1 pct higher at