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updated 02:00, Wed December 12, 2007

ECB Drains 21 Billion Euros From Markets in Quick Tender

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FRANKFURT, Germany (AP) -- The European Central Bank said Tuesday it drained 21 billion euros ($30.9 billion) from money markets in a one-day tender, a move designed to keep markets steady.

The bank, which oversees monetary policy for the 13-nation euro zone, said it removed the money in a quick tender at a fixed rate of 4 percent, adding it had received 20 bids totaling some 23.5 billion euros ($34.6 billion).

Earlier in the day the bank said its own forecasts showed that there was an imbalance in liquidity of approximately 21 billion euros and that it planned to absorb the surplus cash.

The bank also allotted 218.5 billion euros ($321.6 billion) in its normal, weekly refinancing operation.

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