ECB drains $183 million in term deposits to offset bond program

The European Central Bank said it will take 129 billion euros ($183 billion) in term deposits from euro-area banks tomorrow to neutralize the extra money created by its bond purchases.

The Frankfurt-based ECB said it received 100 bids for the seven-day deposits totaling 173.6 billion euros. The marginal rate was 1.05 percent. The 129 billion euros the ECB will absorb correspond to the total amount of extra liquidity its bond-purchase program has created since it began in May last year.

The ECB, which sterilizes its bond purchases to ensure they don't fuel inflation, was forced to start buying Italian and Spanish securities on Aug. 8 to contain Europe's sovereign debt crisis. The central bank settled purchases worth 13.3 billion euros last week, down from 6.65 billion euros the previous week.