The European Central Bank is poised to offset any acceleration in emergency loan repayments by the region’s banks to ensure reduced liquidity doesn’t undermine its monetary policy. Two-year German yields climbed to a 10-month high as traders increased bets in January on higher money-market rates after lenders started repaying money disbursed by the central bank’s Longer-Term Refinancing Operations. Banks have pledged to return 145.6 billion euros ($195 billion) of the initial 489 billion euros of three-year funds, leaving about 510 billion euros of excess liquidity, according to analysts at JPMorgan Chase & Co. ECB ... (full story)