FRANKFURT (MNI) – The European Central Bank announced on Monday
that it settled E2.243 billion in bond buys in the week ending October
14, down from the E2.312 billion it had purchased and settled the
previous week and from E3.795 billion the week before that.
The new purchases settled last week brought the cumulative total
still on the bank’s balance sheet to E165.0 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.
[TOPICS: MT$$$$,M$$EC$,M$$FI$,M$X$$$,MGX$$$]
