This page has been archived and commenting is disabled.

European Bank Interest In ECB's Weekly "Monetization" Auction Plunges

Tyler Durden's picture




 

As reported yesterday, the ECB today completed a weekly liquidity withdrawing operation consisting of Fixed Term Deposits, to "remove" the excess cash obtained from €51 billion worth of sovereign bond purchases. This was the sixth consecutive such auction, and the sixth consecutive decline in the bid to cover. 67 bidders participated and submitted total bids for €71.559 billion, to take down €51 billion, or a 1.40 Bid To Cover, which was another sequential decline compared to last week's €47 billion in take down after €71.078 in total bids, or 1.50 bid to cover. The weighted average allotment rate was 0.31%, with a maximum rate of 1% and a marginal rate of 0.4%. With another auction next week, and then many more, all dependent on the amount of debt that Spain et al place "successfully", we expect the Bid To Cover to decline consistently, until we hit a 1 BTC and the ECB realizes its monetization program is a failure.

The declining interest in auctions, as seen by the drop in Total Amount Bid and Bid To Cover, and the increasing cumulative total of monetizable amount that must be auctioned off (a scary combination), can be seen below:

 

 

- advertisements -

Comment viewing options

Select your preferred way to display the comments and click "Save settings" to activate your changes.
Tue, 06/22/2010 - 08:28 | 426470 trav7777
trav7777's picture

Plunges, bitchez

Tue, 06/22/2010 - 08:47 | 426482 LeBalance
LeBalance's picture

I come to you as the one who is strong.  I bring you all advice and direction.  In this light I assume the role of leader, hero, and guide.

But that is only the role or clothes that I wear when I am in relationship with the uneducated.  For the educated see me in a completely different light: as a parasite.

For in that light, I wish to have total control, not through effort and providing, but through force.  I do not know whether I could provide. I just have this need to feed and be as I am.

From that perspective, my response when the educated learn of my nature or when my feeding can not be hidden should be obvious to all.

I hide my self in a storm of blood.

//// I hope I have done the math correctly.  This is not a palatable situation, but one that deserves to be defined correctly and examined by those who care.///

Tue, 06/22/2010 - 10:14 | 426613 IE
IE's picture

I come to you as the one who is strong.  I bring you all advice and direction.  In this light I assume the role of leader, hero, and guide.

But that is only the role or clothes that I wear when I am in relationship with the uneducated.  For the educated see me in a completely different light: as a parasite.

For in that light, I wish to have total control, not through effort and providing, but through force.  I do not know whether I could provide. I just have this need to feed and be as I am.

From that perspective, my response when the educated learn of my nature or when my feeding can not be hidden should be obvious to all.

I hide my self in a storm of blood.

 

Who wrote?

Tue, 06/22/2010 - 09:30 | 426548 aint no fortuna...
aint no fortunate son's picture

Actually, is it an ECB failure, or a Bernanke failure? Where, ultimately, did the concept and CASH come from for the ECB to start this transparent scam?

Tue, 06/22/2010 - 17:40 | 427810 youngandhealthy
youngandhealthy's picture

what did you expect? the bid ratio to increase when the amount increase....give me a break ZH...you can better than this (popular sh.t)

Tue, 06/22/2010 - 21:40 | 428297 Tyler Durden
Tyler Durden's picture

I would certainly expect the bid interest to increase... or, stated otherwise, it better increase before another 20 billion in auctioned off as the BTC will be below one. And that's math sh.t, not popular.

Do NOT follow this link or you will be banned from the site!