ECB Drains 214 Billion Euros to Offset Government Bond Purchases

The European Central Bank said it drained 214 billion euros ($281 billion) in seven-day term deposits to neutralize the liquidity created by its government bond purchase program.

The Frankfurt-based central bank said 75 banks submitted bids totaling 438 billion euros. The ECB sterilizes its government bond purchases to ensure they don’t fuel inflation.

To contact the reporter on this story: Gabi Thesing in London at gthesing@bloomberg.net

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

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