FRANKFURT (MNI) – The European Central Bank accelerated its
activity in the sovereign bond market last week, buying E1.073 billion
of sovereign securities, the ECB announced Monday.
One week earlier, the central bank made E711 million in bond
purchases after having abstained completely in the previous three weeks.
The ECB said today it will reabsorb E65 billion Tuesday in a quick
tender to collect one-week term deposits.
That total represents the volume of bonds purchased through the
Securities Market Program — the formal name of the bank’s bond-buying
program — and settled as of last Friday, rounded to the nearest half
billion.
The operation, to be conducted on Tuesday at 10:30 GMT, will be in
the form of a variable-rate tender with a maximum bid rate of 1.00%, the
bank said.
The liquidity will be held for one week at the bank as a term
deposit. The fixed-term deposits can be used as collateral in the
Eurosystem’s credit operations, the ECB said.
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 —
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