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(Updates with reactions from analyst)

FRANKFURT (Thomson Financial) - The European Central Bank said it awarded 61.05 bln eur of liquidity at its 3-day quick tender called earlier today.

Bids for funds totaled 110.03 bln eur. The total number of bidders were 62.

The weighted average interest rate on accepted bids at the quick refi was 4.08 pct.

The marginal rate -- the lowest rate at which bids were accepted -- was 4.05 pct.

Bids were made at rates ranging from 4.00 pct to 4.15 pct. The ECB had set a minimum bid rate of 4.00 pct.

All of bids at the marginal rate were met in full.

The ECB earlier said it had called the quick tender as a follow up on the liquidity injecting operation yesterday and that it was intended to "assure orderly conditions in the euro money market".

The ECB did not offer a specific volume of funds at the tender and said the auction type would be a variable rate tender operation.

Deutsche Postbank analyst Heinrich Bayer said the banks made an offer for the funds by offering interest rates at between 4.05 pct and 4.15 pct, "which is a wide spread", indicating some banks had apparently made a very high bid to ensure that they would be among those which would be alloted the funds.

"This indicates there are still some nervousness in the market. Some of those which offered 4.15 pct to get the funds may well have made such a very high bid so that they can be assured of getting the money," Bayer said. Bayer also said the the 61.05 bln eur being injected to boost liquidity is lower than the 94.84 bln pumped into the money market by the ECB yesterday but the fact that bidders have asked to today to borrow a total of 110.03 bln eur of funds is a massive amount.

marilyn.gerlach@thomson.com

mog/dca/mog/jlw

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