Keeping you up to date on the latest data releases.
The European Central Bank rolled over its swap operations in both of the past two weeks—the sixth and seventh consecutive weeks that it has drawn dollar liquidity. Both operations were for $60 million at a rate of 1.18 percent. In the Treasury General Account, the balance remained close to $58 billion, nearly three times as high as right before the end of the third quarter. The Federal Reserve Board announced and conducted a fourth Term Deposit auction, which took place on Monday October 4. The $5 billion auction was for 28-day deposits. Results from the operation showed that the stop-out rate was just under 27 basis points and that the bid-to-cover ratio was 2.72. This operation was still part of the announced small-scale operations that were to be conducted in preparation of larger-scale operations.
The outstanding loan balances for Maiden Lane II and III were reduced this week, with Maiden Lane II falling $200 million and Maiden Lane III dropping $350 million. Their balances now stand at $13.5 billion for Maiden Lane II and $14.3 billion for Maiden Lane III, even though the estimated value of the portfolio holdings is $15.7 for Maiden Lane II and $22.8 for Maiden Lane III. These transactions follow last week?s announcement from AIG that it had constructed a plan to exit from government assistance. Discount Window lending to primary dealers spiked this past week to $89 million. While the amount is tiny compared to the total balance sheet, it is the highest level seen since June of this year.