The European Central Bank Monday called for tenders in its weekly refinancing operation.
The reverse transactions, conducted by means of a variable-rate tender using the multiple rate, or U.S. method of allotment will have a maturity of seven days.
This will be the first scheduled tender after the ECB held three unscheduled fine-tuning operations to ease liquidity constraints on euro-zone money markets.
"In this main refinancing operation, the ECB aims to ensure the continued normalization of money market conditions," the ECB said in a statement. "The allotment amount will be consistent with this aim and will not be bound by the published benchmark allotment amount."
The ECB has set a minimum bid rate of 4.00% for the operation.
The ECB said the banking system's expected daily liquidity needs stemming from autonomous liquidity factors are EUR244.0 billion for the Aug. 13-21 period.
The benchmark allotment, based on those liquidity forecasts, is EUR237.5 billion, the ECB said.
Financial institutions are now invited to place bids with the ECB through national central banks. Bids are due at 0730 GMT Tuesday.
The ECB will then compile the bids and announce the allotment results at around 0915 GMT.
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