FRANKFURT (MNI) – The European Central Bank said Monday that it
purchased E142 million in government bonds in the week ending Friday,
August 27.
The central bank has cut back on its purchases of government
securities after having purchased bonds worth E338 million in the
previous week.
On Tuesday, the ECB will reabsorb E61 billion in cumulative
purchases of government bonds via a quick tender to collect one-week
term deposits, the central bank announced Monday.
The total is equivalent to the number of bonds purchased through
the Securities Market Program and settled as of last Friday rounded to
the nearest half billion.
The operation, to be conducted on Tuesday at 9:30 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. These fixed-term deposits can be used as collateral for the
Eurosystem’s credit operations, the bank said.
The bank will hold another liquidity-absorbing operation next week,
the bank said Monday.
— Frankfurt bureau: +49 69 720 142; email: frankfurt@marketnews.com —
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