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Strategies & Market Trends : 2026 TeoTwawKi ... 2032 Darkest Interregnum -- Ignore unavailable to you. Want to Upgrade?

To: Haim R. Branisteanu who wrote (38644)	8/13/2008 1:35:35 PM
From: elmatador	Respond to of 218005

Central Banks Continue to Inject Liquidity continuing to pump U.S. dollars into the banking system, generating heavy demand for liquidity from banks. Central Banks Continue to Inject Liquidity Global central banks continued to pump U.S. dollars into the banking system, generating heavy demand for liquidity from banks. The European Central Bank said it allocated $20 billion in a 28-day dollar auction. Demand for the dollars was sharp — total bids amounted to $91.1 billion, more than four times the amount allotted. The funds were offered at a fixed rate of 2.45%, equal to the marginal rate of a simultaneous U.S. Federal Reserve tender and just below the market rate. The Fed said it awarded $50 billion in 28-day credit at 2.45%, coming in short of the $75.46 billion in bids it received. The Swiss National Bank meanwhile set a minimum bid rate of 2.01% for its latest dollar-denominated auction for up to $4 billion. The SNB said it allotted the whole $4 billion; bids totaled $11.60 billion. The ECB, the Fed, and the Swiss National Bank began conducting coordinated dollar auctions in December 2007 to alleviate financial market turmoil. Wednesday’s actions came a day after an earlier coordinated liquidity provision for money markets that saw the ECB allocate $10 billion in its first 84-day dollar auction. The SNB at the same time allocated $2 billion to markets, while the Fed offered $25 billion in its 84-day term auction facility. The extended 84-day maturity is widely seen as an effort to assuage the market at sensitive times such as the end to reserve periods, quarters, and fiscal years when banks have scrambled for cash. Following the dollar auction, one-month funds on the interbank euro money market were quoted at 4.51%, an intraday high, though below a 2008 high of 4.65%. Interbank rates are the rates banks use to lend to one another. In a separate operation earlier Wednesday, the ECB allocated 50 billion euros at rates of 4.61% and higher in a renewed supplementary three-month refinancing operation. –Monica Houston-Waesch and Emese Bartha Permalink \| Trackback