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ECB Term Deposit Facility Results: 10x Bid To Cover

Tyler Durden's picture




 

The ECB's sterilizing Fixed-Term Deposit facility closed earlier today, with the result being €162.7 billion in bids for a €16.5 billion in total allotted. The interest rate on the facility came out at 0.28%, on a whopping 223 bidders. Well, out of a 1,000 or so banks, we know that at least a quarter are flushed with liquidity, or at least happy to put aside 7 days of cash. 

 

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Tue, 05/18/2010 - 08:16 | 357791 Black Swan
Black Swan's picture

God Dam this is tiring!, so much so i'm having trouble keeping up. I know that when the music eventually stops i'm going to have to find a chair to sit on. But with more them 50 people in the room and only 10 chairs this is gonna get interesting.

As i've seen quoted on this site many times before "GOLD BITCHES GOLD".

Tue, 05/18/2010 - 09:37 | 357911 cbaba
cbaba's picture

+1

Tue, 05/18/2010 - 08:41 | 357826 spanish inquisition
spanish inquisition's picture

Woohoo! More HOT money looking for a home. Definitely bullish. Hey EU call me..

Tue, 05/18/2010 - 08:49 | 357842 mikla
mikla's picture

OMG.  We need QE because nobody has any cash?  Where the hell did all this cash come from?  </sarcasm>

Liquidity is fine.  Liquidity is everywhere.  However, no one is solvent.  All roads lead to monetization.

Tue, 05/18/2010 - 08:55 | 357850 Hiwatt
Hiwatt's picture

....still no comment around here on why there was a mere $1bn takeup in the ECB USD tender....

Tue, 05/18/2010 - 09:21 | 357878 mikla
mikla's picture

Low demand means the banks can find funding elsewhere.

Demand will pick up as they learn how to leverage the program.

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rocky89's picture

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