UK banks' dollar demand falls back sharply at BoE repo

British banks' demand for U.S. dollar liquidity from the Bank of England fell back sharply to normal levels on Monday, after last week brought the strongest demand since 2009, suggesting joint central bank action has eased some money market tensions.

Banks bid for just $5 million of funds at a new daily repo operation for seven-day U.S. dollar funds, down from $8.210 billion at the regular weekly operation on March 18, which was the most lent in a single operation since February 2009.