European Central Bank overnight operation data released, deposit facility usage remains at a high level

⑴ The European Central Bank released daily liquidity data: €282 million was lent via the overnight lending facility on the day, compared to €183 million the previous day. ⑵ The usage of the overnight deposit facility amounted to €1,968.903 billion, versus €1,956.554 billion the previous day. ⑶ Current account holdings stood at €323.059 billion, down from €337.866 billion the previous day. ⑷ The usage of the deposit facility remains extremely high, indicating ample liquidity in the banking system, with overnight funds still inclined to flow back to the central bank rather than into the interbank market. ⑸ The focus going forward is whether this pattern can adjust as the monetary policy trajectory changes.