— corrects date to say Oct 7 NOT Oct 10
FRANKFURT (MNI) – The European Central Bank announced on Monday
that it settled E2.312 billion in bond buys in the week ending October
7, down from the E3.795 billion it had purchased and settled the
previous week and from E3.952 billion the week before that.
The new purchases settled in the week ending October 7 brought the
cumulative total still on the bank’s balance sheet to E163.0 billion. As
usual, the central bank said it will seek to sterilize the entire amount
through a quick tender to collect one-week term deposits.
The deposit tender, to be held Tuesday at 0930 GMT/0530 ET, will be
conducted as a variable-rate operation with a maximum bid rate of 1.5%,
the ECB said. The fixed-term deposits can be used as collateral in the
Eurosystem’s credit operations.
The central bank also said it intends to hold another liquidity-
absorbing operation next week.
As of November 8, the maximum number of bids per counterparty will
be increased from two to four “in SMP related fine-tuning operations
carried out through variable rate tender procedures without same day
settlement,” the ECB said.
“In other find tuning operations, e.g. fine-tuning operations on
the last day of the maintenance period, the mexium number of bids will
continue to be limited to two,” the bank added.
[TOPICS: MT$$$$,M$$EC$,M$$FI$,M$X$$$,MGX$$$]
