ECB bond tally creeps higher, bank deposits dip

 

Overnight bank deposits at the European Central Bank inched down, data showed on Wednesday, while the amount of covered bonds purchased by the ECB as part of its 60 billion euro stimulus programme continued to rise.

Banks deposited 85.880 billion euros at the ECB overnight on Sept. 21, compared to 85.931 euros deposited previously.

The amount banks borrowed from the ECB's overnight account rose, to 154 million euros from 139 million euros previously.

The amounts parked at the ECB's deposit facility have been high since it flooded money markets with almost half a trillion euros in one-year funds at the end of June.

The ECB and the 16 euro zone national central banks are also buying euro-denominated covered bonds - debt backed by a pool of assets such as mortgage loans that remain on the issuing bank's balance sheet - over the next year, from both primary and secondary markets.

The ECB said the total purchased rose to 13.287 billion euros, from 12.906 billion euros. It means the ECB is now more than 22 percent of the way through the 60 billion euros it has earmarked to spend.