FRANKFURT, Aug 14 (Reuters) - The European Central Bank injected 7.7 billion euros of overnight cash, draining almost 40 billion euros net from the euro-zone money markets on Tuesday.
The money in the one-day quick tender was its fourth special operation since last Thursday to calm panicky markets but each has been progressively smaller than the previous one.
The ECB awarded the money at a weighted average rate of 4.07 percent and 100 percent of bids were accepted at the marginal rate, which also was 4.07 percent.
The quick tender withdraws funds from the euro-zone money markets, since 47.67 billion euros in one-day money is maturing on Tuesday.
A total of 41 banks bid for 45.97 billion euros at the quick tender, which the ECB said offered banks the opportunity of covering any remaining liquidity needs ahead of the settlement of its regular weekly money market tender on Wednesday.
Results of that weekly tender, the ECB’s main refinancing operation, are due shortly. The weekly operation may also add additional funds to the banking system.
Earlier the ECB had said that market conditions were close to normal now.
For the ECB announcement of tender results, click on ECB23