ECB released its weekly statement for the week ending at 8 June 2012.

Based on an increase in the MRO last week (and the fact that ECB data pointed to an increase in net autonomous factors) i anticipated that ECB’s liabilities would increase by roughly the same amount. It turns out that the increase was ELA repayment after all, with the latter decreasing by€ 61bn (a very large amount). Lending from the ECB increased by €69.5bn, mostly through the MRO (€68.2bn increase), although the marginal lending facility also increased by €1.2bn.

On the liability side, the important observation is the continued increase in ‘Liabilities to non-euro area residents denominated in euro’ which grew by €13.2bn and is most probably attributed to SNB foreign reserves accumulation. The inflow into swiss assets is quite evident in the negative yield swiss bond curve:

Apart from the weekly statement, an MRO and LTRO was also conducted today. Compared to the previous MRO, this week’s operation increased by €12.4bn (€131.8bn vs €119.4bn) while the 1 month LTRO grew  by €5.9bn (€18.9bn from €13bn), a total increase of roughly €18.3bn which is surely a large amount.

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