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BoE receives no bids after restarting dollar repo
inspector_monkfish
Posts: 9,276 Forumite
10:08 11May10 - BoE receives no bids after restarting dollar repo
LONDON, May 11 - The Bank of England said it received no bids on Tuesday at its first dollar repo since announcing it would restart the operations as part of joint action with the U.S. Federal Reserve and European Central Bank.
The operations are aimed to ease funding tensions in the interbank lending market, but the BoE had previously discontinued them because of a lack of demand.
The BoE had offered dollar funds at a rate of 1.22 percent.
LONDON, May 11 - The Bank of England said it received no bids on Tuesday at its first dollar repo since announcing it would restart the operations as part of joint action with the U.S. Federal Reserve and European Central Bank.
The operations are aimed to ease funding tensions in the interbank lending market, but the BoE had previously discontinued them because of a lack of demand.
The BoE had offered dollar funds at a rate of 1.22 percent.
Please take the time to have a look around my Daughter's website www.daisypalmertrust.co.uk
(MSE Andrea says ok!)
(MSE Andrea says ok!)
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Comments
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Translation please.0
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have they started reverse repo's yet?inspector_monkfish wrote: »10:08 11May10 - BoE receives no bids after restarting dollar repo
LONDON, May 11 - The Bank of England said it received no bids on Tuesday at its first dollar repo since announcing it would restart the operations as part of joint action with the U.S. Federal Reserve and European Central Bank.
The operations are aimed to ease funding tensions in the interbank lending market, but the BoE had previously discontinued them because of a lack of demand.
The BoE had offered dollar funds at a rate of 1.22 percent.0 -
Please take the time to have a look around my Daughter's website www.daisypalmertrust.co.uk
(MSE Andrea says ok!)0 -
Is this good news, bad news, or a miscalculation by the BoE?It's getting harder & harder to keep the government in the manner to which they have become accustomed.0
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lemonjelly wrote: »Is this good news, bad news, or a miscalculation by the BoE?
Mostly good news.
It means banks do not (yet) need to use this facility as funds are available cheaper elsewhere.“The great enemy of the truth is very often not the lie – deliberate, contrived, and dishonest – but the myth, persistent, persuasive, and unrealistic.
Belief in myths allows the comfort of opinion without the discomfort of thought.”
-- President John F. Kennedy”0 -
lemonjelly wrote: »Is this good news, bad news, or a miscalculation by the BoE?
all of the above
good news - banks have indicated they don't need the money
bad news - central banks miscalculated
why would you take 7day usd funds at 1.22, when the market rate is around 0.45?
granted there is not alot on offer, but i think the rate nees to come down alot before central banks can tempt anyone to take up the offerPlease take the time to have a look around my Daughter's website www.daisypalmertrust.co.uk
(MSE Andrea says ok!)0 -
10:01 11May10 ECB ALLOTS 9.205 BLN DOLLARS IN 8-DAY OPERATION
10:01 11May10 ECB lends banks 9.205 bln dollars in 8-day operation at fixed rate
clearly there are more desperate European banks out there.....Please take the time to have a look around my Daughter's website www.daisypalmertrust.co.uk
(MSE Andrea says ok!)0 -
GTS:
A repo is a sort of secured short term loan (almost always less than a year and normally a matter of days). The security that is put up is usually a very high quality bond, eg UK or US Government debt, and debt that is in the same currency that the loan will be made in.
The risk from the lender's pov is very low indeed or at least should be.
At the moment, the BoE is offering to lend US Dollars as well in repos as they have been temporarily lent Dollars and at the same time lent the US Central banks (the Federal Reserve) pounds in return (hence the term 'swap' pound debt and dollar debt has been swapped).0 -
GTS:
A repo is a sort of secured short term loan (almost always less than a year and normally a matter of days). The security that is put up is usually a very high quality bond, eg UK or US Government debt, and debt that is in the same currency that the loan will be made in.
The risk from the lender's pov is very low indeed or at least should be.
At the moment, the BoE is offering to lend US Dollars as well in repos as they have been temporarily lent Dollars and at the same time lent the US Central banks (the Federal Reserve) pounds in return (hence the term 'swap' pound debt and dollar debt has been swapped).
most cent banks are doing it
BOE - no takers
Swiss Nat Bank - no takers
ECB - USD 9bioPlease take the time to have a look around my Daughter's website www.daisypalmertrust.co.uk
(MSE Andrea says ok!)0 -
I think all this relates to the Greece bailout, it's just cover to allow the ECB to put liquidity into Greek banks, which are/have been in a slow bank run for months.“The ideas of debtor and creditor as to what constitutes a good time never coincide.”
― P.G. Wodehouse, Love Among the Chickens0
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