ECB Bond Buys Likely Slow To E4.0 Bln in Week Ended Oct 28

FRANKFURT (MNI) – The European Central Bank announced on Friday
that it expected to have settled E4.0 billion in bond buys in the week
ending October 28, down from the E4.49 billion last week, but up from
the previous period’s E2.243 billion.

The new purchases settled this week would bring the cumulative
total still on the bank’s balance sheet to E173.5 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 Monday at 1030 GMT/0530 ET, will be
conducted as a variable-rate operation with a maximum bid rate of 1.5%,
the ECB said. The fixed-term deposits can be used as collateral in the
Eurosystem’s credit operations.

The central bank also said it will announce the next liquidity-
absorbing operation on November 7.

— Frankfurt bureau: +49 69 720 142; email: frankfurt@marketnews.com —

[TOPICS: MT$$$$,M$$EC$,M$$FI$,M$X$$$,MGX$$$]