Arab Today, arab today ecb overnight borrowing jump seen temporary
Last Updated : GMT 13:22:57
Arab Today, arab today
Arab Today, arab today

ECB overnight borrowing jump seen temporary

Arab Today, arab today

Arab Today, arab today ECB overnight borrowing jump seen temporary

London - Arabstoday

A jump in overnight borrowing from the European Central Bank pointed to a bottleneck in the euro zone banking sector on Tuesday , but traders expected it was a temporary issue that ECB crisis measures would soon relieve. Borrowing from the central bank’s overnight window jumped to 1.259 billion euros from just 6 million the day before. The ECB charges 2.25 per cent interest, compared to the 1.5 per cent it charges in its regular refinancing operations, and the 0.874 per cent overnight cash is on offer on open markets.Traders were not immediately worried by the jump but will watch the borrowing trend closely in the coming days.“If it (the borrowing spike) is not there tomorrow then it was just a miscalculation by someone or because of an outflow that happened late in the day which was too late to be covered in the market,” said one euro zone-based trader. “If it continues beyond next week though it might be that someone has got a little problem and if it goes to 3 yards (billion), then to 5 and then to 7 then it would start to get a little scary.”Money markets remain in a fragile state following the recent escalation in the euro zone debt crisis, although tensions have subsided over the last week following an injection of six-month ECB emergency funding and a decisive move by the central bank to stabilise markets by buying Italian and Spanish bonds.With the ECB holding its regular handout of unlimited one-week funding on Tuesday, traders expected use of the expensive overnight facility to be short-lived.“There is the possibility that a bank needs money but I haven’t heard any rumours about any names,” said one euro zone-based money market trader.“The MRO (one-week refi) is today so that (use of overnight facility) should disappear anyway.” Banks took 148 billion euros at the one-week operation, exactly in line with expectations. The ECB’s decision to start buying government bonds again is another factor affecting money markets. It spent a record 22 billion euros last week, taking the controversial programme’s total to 96 billion euros.Later on Tuesday it will hold its weekly ‘sterilisation’ operation, where it bids to counterbalance the purchases by getting banks to deposit an equal amount - 96 billion euros - with the ECB. From / Gulf Today

arabstoday
arabstoday

Name *

E-mail *

Comment Title*

Comment *

: Characters Left

Mandatory *

Terms of use

Publishing Terms: Not to offend the author, or to persons or sanctities or attacking religions or divine self. And stay away from sectarian and racial incitement and insults.

I agree with the Terms of Use

Security Code*

Arab Today, arab today ecb overnight borrowing jump seen temporary Arab Today, arab today ecb overnight borrowing jump seen temporary

 



Arab Today, arab today

Name *

E-mail *

Comment Title*

Comment *

: Characters Left

Mandatory *

Terms of use

Publishing Terms: Not to offend the author, or to persons or sanctities or attacking religions or divine self. And stay away from sectarian and racial incitement and insults.

I agree with the Terms of Use

Security Code*

Arab Today, arab today ecb overnight borrowing jump seen temporary Arab Today, arab today ecb overnight borrowing jump seen temporary

 



Arab Today, arab today France defies terrorism through tourism

GMT 15:18 2017 Saturday ,20 May

France defies terrorism through tourism
Arab Today, arab today Zainab Fadel Oglu designs “Shakerin” mosque

GMT 12:13 2017 Thursday ,11 May

Zainab Fadel Oglu designs “Shakerin” mosque
Arab Today, arab today Seeks to move past rift with Israel

GMT 08:00 2017 Monday ,08 May

Seeks to move past rift with Israel
View News in Arabic - Business: مصارف
Arab Today, arab today
Arab Today, arab today
Arab Today, arab today Mozambique's gas boom dream under threat

GMT 16:29 2017 Monday ,08 May

Mozambique's gas boom dream under threat
Arab Today, arab today Prepares to give stargazers an eyeful

GMT 13:38 2017 Monday ,06 March

Prepares to give stargazers an eyeful
Arab Today, arab today Jaguar displays XF Sportbrake line

GMT 14:36 2017 Monday ,08 May

Jaguar displays XF Sportbrake line
Arab Today, arab today BMW sees forecasts in reach

GMT 09:04 2017 Thursday ,04 May

BMW sees forecasts in reach
Arab Today, arab today Climate science: Bad news gets worse

GMT 08:48 2017 Saturday ,06 May

Climate science: Bad news gets worse
Arab Today, arab today
Arab Today, arab today
 
 Arab Today Facebook,arab today facebook  Arab Today Twitter,arab today twitter Arab Today Rss,arab today rss  Arab Today Youtube,arab today youtube  Arab Today Youtube,arab today youtube
arabstoday arabstoday arabstoday arabstoday
arabstoday arabstoday arabstoday
arabstoday
بناية النخيل - رأس النبع _ خلف السفارة الفرنسية _بيروت - لبنان
arabstoday, Arabstoday, Arabstoday