Banks Fail to Back ECB Bond Buys

December 28th, 2010
in News, Banking

Reuters:  The European Central Bank failed to attract the 73.5 billion euros from banks on Tuesday needed to offset its seven-month run of euro zone government bond purchases, instead managing to draw just over 60 billion.

Follow up:

The pace of the ECB's government bond purchases picked up last week as the bank spent 1.121 billion euros reflecting the bank's ongoing attempt to calm euro zone debt markets.

 

The central bank takes seven-day deposits from commercial banks on a weekly basis to offset its spending, but the failure to fully sterilize the purchases is likely to reflect the fact banks are keeping hold of their funding around the traditionally tense year-end period.

 

"It has happened before but I wouldn't make too much of a big deal out of it," said ING economist Martin Van Vliet.  "The end of year is typically a quiet period and banks books are closed so it shouldn't be seen as a sign that tensions are returning to interbank markets."  Read more.....









Make a Comment

Econintersect wants your comments, data and opinion on the articles posted.  As the internet is a "war zone" of trolls, hackers and spammers - Econintersect must balance its defences against ease of commenting.  We have joined with Livefyre to manage our comment streams.

To comment, just click the "Sign In" button at the top-left corner of the comment box below. You can create a commenting account using your favorite social network such as Twitter, Facebook, Google+, LinkedIn or Open ID - or open a Livefyre account using your email address.















 navigate econintersect.com

Blogs

Analysis Blog
News Blog
Investing Blog
Opinion Blog
Precious Metals Blog
Markets Blog
Video of the Day
Weather

Newspapers

Asia / Pacific
Europe
Middle East / Africa
Americas
USA Government
     

RSS Feeds / Social Media

Combined Econintersect Feed
Google+
Facebook
Twitter
Digg

Free Newsletter

Marketplace - Books & More

Economic Forecast

Content Contribution

Contact

About

  Top Economics Site

Investing.com Contributor TalkMarkets Contributor Finance Blogs Free PageRank Checker Active Search Results Google+

This Web Page by Steven Hansen ---- Copyright 2010 - 2016 Econintersect LLC - all rights reserved