FRANKFURT (MNI) – The European Central Bank announced on Monday
that it settled E4.49 billion in bond buys in the week ending October
21, its largest purchase since mid September.
Taking into account the E240 million in bonds having matured last
week, the new purchases settled last week brought the cumulative total
still on the bank’s balance sheet to E169.5 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.
— Frankfurt bureau: +49 69 720 142; email: frankfurt@marketnews.com —
[TOPICS: MT$$$$,M$$EC$,M$$FI$,M$X$$$,MGX$$$]
