FRANKFURT (MNI) – The European Central Bank announced on Monday
that it had settled no bond purchases in the week ending August 24 but
has let E2.517 billion in bonds mature, thereby lowering its overall
holdings.
The ECB extended its bond-buying pause to 24 consecutive weeks as
it considers a new program to buy bonds in conjunction with purchases
by the EFSF/ESM rescue funds.
As a result, the cumulative total still on the bank’s balance sheet
fell to E208.5 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 0.75%,
the ECB said. The fixed-term deposits can be used as collateral in the
Eurosystem’s credit operations.
The ECB confirmed it would hold another term-deposit tender next
week on Tuesday to sterilize SMP bonds still on its books.
— Frankfurt bureau: +49 69 720 142; email: frankfurt@mni-news.com —
[TOPICS: M$$CR$,M$X$$$,M$XDS$,MN$MM$,M$$EC$]
