LONDON, Feb 1 (Reuters) - German Bund futures rose and the euro fell on Friday after the ECB said 3.5 billion euros of its three year banking loans would be repaid next week -- a figure well below market expectations.

Banks will pay back another 3.5 billion euros next week of the emergency 3-year loans they took from the European Central Bank a year ago, further deflating the ECB's balance sheet after they paid back a whopping 137 billion euros this week.

A Reuters poll earlier this week showed money market traders had been expecting 20 billion euros to be repaid.

The Bund future rose to 141.87, still 3 ticks lower on the day but up versus 141.66 seen before the release of the data. Euribor futures also erased losses and turned positive.

The euro fell to $1.3640 from $1.3667 before the ECB announcement while the FTSEurofirst 300 index of pan-European stocks trimmed gains to trade 0.1 pct higher at 1,165.71 points.

(Reporting by London Markets desk; Editing by Marius Zaharia) Keywords: MARKETS BONDS/ECB

(william.james@thomsonreuters.com)(+44 207 542 3374)(Reuters Messaging: william.james.thomsonreuters.com@reuters.net)

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