FRANKFURT (MNI) – The European Central Bank announced on Friday
that it expected to have settled E19 million in bond buys in the week
ending December 23, its lowest level since early August. The
central bank had settled E3.361 billion in the week ending December 16
and E635 million in the week before that.

The new purchases settled this week would leave the cumulative
total still on the bank’s balance sheet at E211 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 1030 GMT/0530 ET, will be
conducted as a variable-rate operation with a maximum bid rate of 1.0%,
the ECB said. The fixed-term deposits can be used as collateral in the
Eurosystem’s credit operations.

— Frankfurt bureau: +49 69 720 142; email: —

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