BoE receives no bids after restarting dollar repo

inspector_monkfish

10:02 11May10 ECB ALLOTS $9.205 BLN IN 7-DAY TAF TENDER AT 1.22% FIXED RATE
10:02 11May10 ECB: SEVEN BIDDERS AT 7-DAY DOLLAR TAF TENDER
10:06 11May10 CORRECT: ECB DOLLAR TENDER IS FOR 8 DAYS, NOT 7 DAYS
ECB Allots $9.205 Bln In 7-Day TAF Tender At 1.22% Fixed Rate

ECB: Seven Bidders At 8-Day Dollar TAF Tender


CORRECT: ECB Dollar Tender Is For 8 Days, Not 7 Days

ECB Allots $9.205 Billion In 8-Day Dlr Tender At 1.22% Fixed Rate

FRANKFURT-The European Central Bank said Tuesday that it allotted $9.205 billion in eight-day dollar funds at a fixed rate of 1.22%.

A total of seven banks bid for the funds, which will be allotted Wednesday
and run through May 20.

The tender was offered through the newly-reintroduced swap facility between the ECB and the U.S. Federal Reserve.

As reported, the ECB and the Fed reactivated the swap line to ensure that
euro-zone banks can continue to get access to the dollar funding market, after a sharp rise in fears last week that Europe's sovereign debt problems could bring down one or more euro-zone banks.

The swap line is one of a number of measures taken by the ECB at the weekend to restore confidence and stability, along with the purchase of euro-zone government bonds and the reintroduction of unlimited tenders for three and six months in euros.

Website: www.ecb.int

Generali

Whilst maintaining confidence in markets is great, ultimately confidence isn't enough to make insolvent entities solvent, although it is enough to make the solvent insolvent.

Swaps, off balance sheet deals (eg pension promises), setting aside international deals (eg 3% of GDP budget deficit maxima) and so on are all really groovy but if you run up an interest bill you can't afford to service then you are in a lot of trouble.