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

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.

Comments

[russki standart]

Calm before the next monetary typhoon. Euro eventually to go bye bye.

[Tarheel]

The US $ must really be garbage now just from looking at the EUR/USD gaining yet again today...

[Edna R. Rider]

The hedgies are bailing this morning:  BAC, AAPL, GLD.  Everybody out of the pool!

[mephisto]

Hence the various takeover rumours today, naturally. Could someone explain efficient markets to me again?

[From Italy]

Hi Tyler, could you paste the link with this announcement? I can't find it anywhere I'd like to keep my eye on this news in the morning here in Europe.

[TooBearish]

Skynet owner on CNBS sayin can't talk about performance due to regulatory rules?  Huh?

[M.B. Drapier]

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

You have to watch both the magician's hands, at the same time. A lite beer says that the ECB/Eurosystem is playing chicken with the rest of the Euroapparat. ECB wants future bailout money to come from the EFSF - or from whatever, so long as it's not the Eurosystem. That's not to say that ECB will win the chicken-match of course.

[LeBalance]

oh the bartender is being very crafty and hiding the whisky bottle again.  Soon we will be spinning and shaking paying whatever is asked for another shot.

[Tarheel]

There is no goverment money for the bailout of Leh..er...Hungary

[dantes1807]

I think one mistake many people make about the European Central Bank is that things are so bearish that the Euro will surprise. If you read the news flow, it seem almost mathematically impossible for this thing not to blow up. A prior ZH article mentioned all the borrowing by the Spanish bank. This is all a giant Ponzi. ZH should start another blog called ponzi watch.