FRANKFURT (MNI) – The European Central Bank announced on Monday
that no bond buys were settled through its Securities Market Programme
in the week ending May 20.
With the central bank abstaining from settling any bond purchases
and E1.227 billion in bonds maturing, the total volume of funds that the
central bank will seek to drain decreased to E75.0 billion, the ECB
said. It 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 at the bank for one week 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
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