ECB drains 69b euros to offset bond buys
FRANKFURT: The European Central Bank (ECB) comfortably attracted the 69 billion euros it needed to offset its purchases of euro-zone government bonds on Tuesday, but had to pay a higher rate of interest to do so than last week.
The ECB takes seven-day deposits from commercial banks on a weekly basis to offset the amount it has spent buying government bonds since May. The ECB increased the pace of its purchases last week, spending close to 2 billion euros.
The ECB paid a weighted average interest rate of 0.65 percent on funds deposited, compared with the 0.41 percent paid last week. Funding may be tighter than usual for banks. Tuesday is also the final day of the ECB's current reserves maintenance period. -PB News