FRANKFURT, Nov 18 - The European Central Bank on Tuesday allocated 99.0 billion euros in 14-day refinancing agreements at 2.00 percent and above for a weighted average rate of 2.02 percent. The rates were below the results of a poll of money market dealers on Monday, which forecast a marginal rate -- the lowest at which the ECB allots funds -- of 2.02 percent and a weighted average rate of 2.03 percent. At last week's auction, the marginal rate and the weighted average rate were 2.03 percent and 2.04 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 84.0 billion euros expire on Wednesday, so a net 15.0 billion euros is draining into the market. The ECB said it had accepted 18.0 percent of bids placed at the marginal rate. The ECB has set the floor for bidding rates at 2.00 percent in the weekly tenders. The lowest bid rate at the auction was 2.00 percent and the highest rate 2.10 percent. The ECB said 281 banks bid for 113.4 billion euros of the refinancing funds this week.//www.reuters.com