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Few takers for SNB overnight cash

The Swiss National Bank (SNB) and the Bank of England have both offered $10 billion (SFr11.34 billion) in overnight liquidity to banks.

But while the Bank of England received $8.9 billion in bids from its limit of ten banks, the SNB received bids for just $900 million from four bidders, it said on Monday.

The SNB was offering a weighted average interest rate of 1.5 per cent on the auction to banks domiciled in Switzerland and the European Union.

The SNB on Monday also made its first swap with the European Central Bank (ECB) for Swiss francs.

The arrangement was meant to give euro zone banks Swiss franc liquidity and will go on as needed until at least January 2009.