FRANKFURT (MNI) – The European Central Bank allotted E56.93445
billion in a 371-day refinancing agreement on Wednesday at a fixed rate
indexed to the main refinancing rate over the life of the operation.
The central bank received 181 bids in this operation. Prior to
today’s allotment, the ECB said it would satisfy all bids made.
The refis will settle this Thursday and expire on November 1, 2012.
The ECB also alloted E44.56435 billion in a 91-day refinancing
operation, to the average rate of the main refinancing operation of the
life of the LTRO, with interest to be paid at maturity.
The three-month refis will also settle this Thursday and expire
January 26, 2012.
With the ECB holding six 3-month refinancing operations in 2012,
the last of which to expire in September 2012, expectations were for
relatively demand for the one-year.
A number of analysts had also expected demand for the one-year to
be low, as more banks would likely still prefer the flexibility that
three-month financing would offer, in terms of liquidity management and
deleveraging.
–Frankfurt Newsroom +49 69 72 01 42: email: frankfurt@marketnews.com–
[TOPICS: M$X$$$,M$$EC$]
