ECB Steps Up Bond Purchases as Leaders Face Self-Imposed Debt-Aid Deadline |
| Bloomberg - Dec 19, 2011 |
The European Central Bank stepped up bond purchases last week as leaders prepared to meet a self- imposed deadline for drawing additional aid to the debt crisis.
The Frankfurt-based ECB said it settled 3.36 billion euros ($4.4 billion) of bond purchases in the week through Dec. 16, up from 635 million euros the previous week. The central bank will take seven-day term deposits tomorrow to absorb the 211 billion euros of liquidity created since its bond program started on May 10 last year, a practice it employs to ensure the purchases don’t fuel inflation.
European finance ministers are holding a conference call today to discuss 200 billion euros in additional funding through the International Monetary Fund. Spanish and Italian notes advanced today, driving down yields, on speculation banks bought the securities to use as collateral when the ECB starts offering three-year loans tomorrow. Italian two-year yields were at 5.11 percent, compared with 7.66 percent on Nov. 25.
Read Full Article from Bloomberg
- Posted: 2011-12-19 09:25:48
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