LONDON- Financial institutions' demand for six-month sterling funds from the Bank of England dropped to a four-week low at an operation on Tuesday, suggesting money market tensions were continuing to ease.
Banks bid for 2.72 billion pounds ($3.35 billion) of six-month sterling funds in exchange for largely high-quality collateral at the BoE's weekly indexed long-term repo (ILTR).
That was down from 3.25 billion pounds last week and the lowest amount since March 10.
However, demand remains much higher than before the escalation of the coronavirus crisis which sent banks scrambling for liquid funds. Under normal circumstances, the BoE typically sees demand of under 1 billion pounds at the ILTRs. ($1 = 0.8131 pounds)
(Reporting by David Milliken Editing by William Schomberg) ((david.milliken@reuters.com; +44 20 7542 5109; Reuters Messaging: david.milliken.thomsonreuters.com@reuters.net))
