FRANKFURT (MNI) – The European Central Bank announced on Monday
that it had settled no bond purchases in the week that ended June 1st,
thus leaving its program in hibernation for the 12th consecutive week.
As a result, the cumulative total still on the bank’s balance sheet
remained at E212.0 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 1.0%,
the ECB said. The fixed-term deposits can be used as collateral in the
Eurosystem’s credit operations.
The ECB said it would hold another term-deposit tender on Tuesday
June 12 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$]