The Blackening Quill
This is, still, a vision thing.

ECB Announces It Bought Just €302 Million In Sovereign Debt Last Week

Go down

ECB Announces It Bought Just €302 Million In Sovereign Debt Last Week

Post  TBQ on Mon Jul 19, 2010 7:14 am

With total cumulative purchases at just over €60 billion since the beginning of its sovereign debt monetization program in May, the ECB purchased just €302 million in (Greek 6 Month) debt last week. As always, tomorrow will see the pyramid scheme of taking the purchases and reliquifying the market in yet another weekly term deposit auction to the tune of €60 billion. If indeed European liquidity is as bad as feared, especially with less than the total upcoming auction size on deposit with the ECB, the bid to cover on tomorrow's latest auction should be another informative data point as to just how bad the EUR scarcity in the eurozone currently is. On the other hand, with the ECB signalling a slow down in monetization, should the ramp in Libor/OIS rates continue, very soon it will be forced to step right back into the sovereign bond purchasing market, confirming the recent solvency lull is only temporary.

By Tyler Durden, Zerohedge

Posts : 399
Join date : 2010-06-03

View user profile

Back to top Go down

Back to top

- Similar topics

Permissions in this forum:
You cannot reply to topics in this forum