Bloomberg News

ECB Says It Didn’t Settle Any Bond Purchases for a Fifth Week

April 16, 2012

The European Central Bank said it didn’t settle any government bond purchases for the fifth straight week.

The Frankfurt-based ECB said it will take seven-day term deposits tomorrow to absorb the 214 billion euros ($279 billion) of liquidity created since the program started in May 2010, a practice it employs to ensure the purchases don’t fuel inflation.

The ECB halted the bond-buying program after its two three- year loans to banks totaling more than 1 trillion euros helped debt markets to rally. Now investors have begun to doubt if Spain can bring its deficit under control, driving the nation’s borrowing costs to the highest levels this year.

Jaime Garcia-Legaz, a deputy in Spain’s Economy Ministry, called on the ECB to restart its bond purchases in an interview on April 13. “They should step up purchases of bonds,” he said.

While ECB Executive Board member Benoit Coeure signaled on April 11 the bank may start buying Spanish bonds, his Dutch colleague Klaas Knot said April 13 that the ECB is “very far” from reactivating a policy that failed to stop a selloff in Spanish bonds in November. “I hope we never have to use it again,” he said.

     Week      Purchases Settled (bln)  Total (bln)
     1              16.50*              16.5
     2              10.00*              26.5
     3               8.50*              35.0
     4               5.50*              40.5
     5               6.50*              47.0
     6               4.00*              51.0
     7               4.00*              55.0
     8               4.00*              59.0
     9               1.00*              60.0
     10              0.302              60.0
     11              0.176              60.5
     12              0.081              60.5
     13              0.009              60.5
     14              0.010              60.5
     15              0.338              60.5
     16              0.142              61.0
     17              0.173              61.0
     18              0.237              61.0
     19              0.323              61.5
     20              0.134              61.5
     21              1.384              63.5
     22              0.009              63.5
     23                  0              63.5
     24                  0              63.5
     25                  0              63.5
     26              0.711              64.0
     27              1.070              65.0
     28              0.713              66.0
     29              1.348              67.0
     30              1.965              69.0
     31              2.667              72.0
     32              0.603              72.5
     33              1.121              73.5
     34              0.164              73.5
     35              0.113              74.0
     36              2.313              76.5
     37              0.146              76.5
     38                  0              76.5
     39                  0              76.5
     40                  0              76.5
     41              0.711              77.0
     42              0.369              77.5
     43                  0              77.5
     44                  0              77.5
     45                  0              77.5
     46              0.432              76.5
     47                  0              77.0
     48                  0              77.0
     49                  0              76.0
     50                  0              76.0
     51                  0              76.0
     52                  0              76.0
     53                  0              76.0
     54                  0              75.0
     55                  0              75.0
     56                  0              75.0
     57                  0              75.0
     58                  0              74.0
     59                  0              74.0
     60                  0              74.0
     61                  0              74.0
     62                  0              74.0
     63                  0              74.0
     64                  0              74.0
     65                  0              74.0
     66                 22              96.0
     67                 14.3           110.5
     68                  6.65          115.5
     69                 13.3           129.0
     70                 13.96          143.0
     71                  9.79          152.5
     72                  3.95          156.5
     73                  3.80          160.5
     74                  2.31          163.0
     75                  2.24          165.0
     76                  4.49          169.5
     77                  4.00          173.5
     78                  9.52          183.0
     79                  4.48          187.0
     80                  7.99          194.5
     81                  8.58          203.5
     82                  3.66          207.0
     83                  0.64          207.5
     84                  3.36          211.0
     85                  0.02          211.0
     86                  0.46          211.5
     87                  1.1           213.0
     88                  3.77          217.0
     89                  2.24          219.0
     90                  0.06          219.0
     91                  0.12          219.0
     92                  0.06          219.5
     93                  0             219.5
     94                  0             219.5
     95                  0             219.5
     96                  0.03          218.0
     97                  0             218.0
     98                  0             213.5**
     99                  0             213.5
     100                 0             214.0
     101                 0             214.0

* = calculated by Bloomberg News
** = some bonds matured

To contact the reporter on this story: Jeff Black in Frankfurt at jblack25@bloomberg.net

To contact the editor responsible for this story: Craig Stirling at cstirling1@bloomberg.net


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