FRANKFURT (MNI) – The European Central Bank said Monday no bond
purchases were settled through its Securities Market Programme for the
second consecutive week.
The bank also reported that E55 million in securities purchased
through the SMP had matured.
As a result of the ECB remaining on the sidelines, the total amount
of funds that the central bank will seek to drain is unchanged at E77.0
billion. The ECB will drain that amount in a quick tender to collect
one-week term deposits.
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 1.25%, 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 central bank also said it intends to hold another
liquidity-absorbing operation next week.
— Frankfurt bureau: +49 69 720 142; email: frankfurt@marketnews.com —
[TOPICS: MGX$$$,M$X$$$,M$$EC$]