DislikedECB buys sovereign bonds from Italy and Spain and maybe even Portugal.
If they do not sterilize these bond purchases by selling them again or by selling other securities, it amounts to Quantitative Easing.
Therefore, every week the ECB conducts a tender for fixed deposits in order to bring the money supply down to where it was before the bond purchases.
So far since they started the SMP, they have a net outstanding difference of €187 Billion because they are only managing to sell about €4 Billion in term deposits every week, yet the bond...Ignored
"I know one thing, that I know nothing." Sokrates