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2025-07-29 17:30:44
ECB Data Reveals: A Sharp Drop in Market Liquidity? €2.59 Trillion in Deposits Holds a Secret! ⑴ On the afternoon of July 29th, Beijing time, the ECB released data showing that the use of overnight lending increased to €127 million from €103 million the previous day. ⑵ Notably, the use of overnight deposit instruments plummeted from €2.624 trillion the previous day to €2.590543 trillion, a decrease of nearly €34 billion. ⑶ Despite the significant size of deposits, this significant decline may indicate a shift in demand for liquidity within the banking system. ⑷ Meanwhile, current account holdings increased significantly from €194.773 billion to €230.847 billion. ⑸ These data paint a complex picture of capital flows within the European financial system, with a slight increase in bank borrowing demand and a significant withdrawal of the substantial amount of funds parked at the central bank. ⑹ The market should closely monitor these subtle changes, as they may reflect the extent of liquidity constraints in the interbank market and adjustments to expectations for future monetary policy. ⑺ Especially at a time when global economic uncertainty is increasing, any fluctuation in the central bank's liquidity data may trigger a chain reaction in the market.
