FRANKFURT (MNI) – The European Central Bank announced Monday its
intention to re-absorb the liquidity injected through its government
bond purchase program.
The 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 1.00%, the
bank said. It intends to mop up E35 billion in liquidity, equavalent to
the amount of bonds purschased through the Securities Market Program in
the previous week, it said.
The liquidity will be held for one week at the bank as a term
deposit. These fixed-term deposits can be used as collateral for the
Eurosystem’s credit operations, the bank said.
The ECB said it will conduct another liquidity-absorbing operation
next week.
–Frankfurt bureau; +49-69-720142; frankfurt@marketnews.com
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