BUNDESBANK ADDS MONEY MARKET LIQUIDITY The Bundesbank came into the domestic money market to add temporary liquidity through federal government funds as call money rates rose above 4.0 pct, dealers said. They estimated that the bulk of liquidity was added at about 3.95 pct. Call money fell to 3.90/4.0 pct after the move. It had been 3.80/90 on Friday. The move came as call money extended a rise begun Friday after the Bundesbank took up some six billion marks owed to it by other European central banks after currency interventions in the framework of European Monetary System in January. Rates could ease further in trading today but dealers expect them to rise later in the week as banks begin paying out funds for tax payments on behalf of clients. Some 30 billion marks is likely to leave the market this month, with the bulk being paid out next week. In anticipation of this liquidity drain, banks have stocked up reserves at the Bundesbank. On Thursday, minimum reserve holdings declined to 57.0 billion marks from 60.0 billion on Wednesday but were well above the 53.2 billion held on Tuesday. Daily average reserve holdings rose slightly to 54.7 billion marks from 54.5 billion. The daily average reserve holdings were above the level of around 51 billion marks dealers said is needed for the required daily average for the month. With the heavy tax drain in March, banks are likely to remain cautious about taking more liquidity out of reserves than is absolutely necessary. However, a new securities repurchase pact likely to be added next week to replace a facility expiring then could somewhat offset the drain. The Bundesbank is expected to allocate more than the 3.4 billion marks which is due to be rolled over, dealers said.