FRANKFURT (MNI) – The European Central Bank announced on Monday
that it had settled E9.793 billion in bond buys last week, down from the
E13.96 billion on purchases made in the week previous.
The new bond purchases settled in the week ending September 16 lift
the amount of liquidity that the central bank will look to drain to
E152.5 billion to renew the sterilization of the bonds still on its
balance sheet. It will do so through a quick tender to collect one-week
term deposits on September 20.
The draining operation, to be conducted on Tuesday at 9:30 GMT,
will be in the form of a variable-rate tender with a maximum bid rate of
1.5%, the central bank said. The liquidity will be held at the bank for
one week as a term deposit. 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.
— Frankfurt bureau: +49 69 720 142; email: frankfurt@marketnews.com —
[TOPICS: M$$CR$,M$$EC$]
