"Last week, the ECB had a failed QE "sterilization" operation, when it was unable to cover the full €55 billion in previously purchased government debt via a Fixed Term Deposit operation, better known as a liquidity reacharound. That particular auction, which occurs every Tuesday, generated only €31.9 billion in bid side interest, or 0.6x BTC. The failure was largely attributed to the massive LTRO maturity the next day. Which is why everyone will be closely following tomorrow's most recent FTD operation. Even more so, since as the ECB just announced, in the prior weak the central bank bought an additional €4 billion in sovereign bonds as part of the Securities Markets Programme which is now at €59 billion. As the chart below shows, this indicates a steady buying interest of €4 billion per week for each of the past 4 weeks. On the other hand, as we have been expecting for a long time, with total bidding interest declining, while the total FTD amount rising each weak, the likelihood of ongoing failed auctions, and continued loss in European liquidity conference keeps going higher."
at http://www.zerohedge.com/article/ecb-buys-another-%E2%82%AC4-billion-sovereign-debt-another-failed-fixed-term-deposit-operation-comin?utm_source=feedburner&utm_medium=feed&utm_campaign=Feed%3A+zerohedge%2Ffeed+%28zero+hedge+-+on+a+long+enough+timeline%2C+the+survival+rate+for+everyone+drops+to+zero%29
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