The ECB attracts just €31.9B in bids for today's €55B term-deposit sale, crafted to drain the...

|By:, SA News Editor

The ECB attracts just €31.9B in bids for today's €55B term-deposit sale, crafted to drain the liquidity ECB has been injecting into the system. The disappointing result will raise questions about the ECB's vow to sterilize all government bonds it purchases, and is a clear sign of rising money-market tensions as banks hoard cash in preparation for reimbursement of its €442B term loan that expires Thursday.