GERMAN PUBLIC AUTHORITY BUNDESBANK HOLDINGS FALL The net position of federal states worsened in the first March week, cutting public authority net holdings at the Bundesbank by 500 mln marks, the central bank said. States' cash deposits at the central bank fell to 800 mln and they also drew down 1.2 billion marks in book credit, 900 mln marks more than in the prior week. By contrast, however, the federal government was able to reduce its credit drawdown at the central bank by 900 mln marks to 900 mln. Despite the stronger states' net needs in the week, their cash position and other market dependent influences just about balanced the outflow of liquidity from the money market through an increase in cash in circulation, the Bundesbank said. Cash in circulation rose by 1.4 billion marks in the week to 122.9 billion. Liquidity also came in through the maturing of short-term treasury bills bought from the Bundesbank in the prior week. Gross currency reserves rose in the week by 400 mln marks to 109.9 billion. Foreign liabilities of the Bundesbank were largely unchanged at 22.8 billion marks, giving a rise in net currency reserves of 400 mln to 87.0 billion, it said. The Bundesbank said its balance sheet total fell by 3.77 billion in the week to 218.45 billion.