Today’s calendar is chockful of central bank meetings: besides the ECB we have the Norges Bank, Riksbank and central bank of Turkey all announcing rates. Furthermore, the economic data docket is full, and particular attention will be paid to the Markit PMIs for October, which we will discuss in tomorrow’s Comment. Regarding the ECB meeting this afternoon (which we previewed in Monday’s Comment which can read here), we will focus on money market conditions and the tiering system that starts with the seventh maintenance period on October 30. Just to refresh your memory, starting on October 30 banks are allowed to park six time their required reserves at their current account at the ECB at zero interest. Banks already park their required reserves at their current account at zero interest. Any liquidity in excess of seven times their reserve requirements (required reserves plus six times required reserves under the tiering system) will have to be parked at the deposit facility at minus 50bps.

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