ECB Drains 211.5 Billion Euros to Offset Bond Buying

(Corrects marginal rate to 0.02 percent from 0.01 percent.)

The European Central Bank said it drained 211.5 billion euros ($260.3 billion) in seven-day term deposits to neutralize the liquidity created by its government bond purchase program.

The Frankfurt-based central bank said 72 banks submitted bids totaling 463 billion euros, up from 397.5 billion euros. The marginal rate on the term deposits was 0.02 percent.

The ECB sterilizes its government bond purchases to ensure they don’t fuel inflation. The ECB hasn’t bought any government bonds for 20 weeks.

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