FRANKFURT (MNI) – The European Central Bank announced on Monday
that it had settled no bond purchases in the week ending August 17,
thereby extending its bond-buying pause to 23 consecutive weeks.
As a result, the cumulative total still on the bank’s balance sheet
remains at E211.5 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@marketnews.com —
[TOPICS: M$$CR$,M$X$$$,M$XDS$,MN$MM$,M$$EC$]
