European Central Bank liquidity data released: overnight deposits approach 2 trillion euros, market excess liquidity remains high

(1) Data released by the European Central Bank on Monday showed that financial institutions borrowed 60 million euros through the overnight lending facility on the day, down from 108 million euros in the previous trading day, indicating a decline in marginal borrowing demand. (2) Meanwhile, usage of the overnight deposit facility climbed to 20.149 billion euros, up from 20.025 billion euros the previous day, demonstrating that surplus liquidity within the banking system remains abundant. (3) The current account holdings stood at 325.302 billion euros, a slight decrease from 332.377 billion euros the previous day, reflecting some structural allocation of funds as the end of the month approached. (4) Overall, the continued high level of deposits signals that the market maintains a relatively dovish outlook on the European Central Bank's interest rate prospects, with financial institutions more inclined to deposit excess funds with the central bank in exchange for stable returns. (5) Persistent weakness in overnight lending demand further confirms that interbank financing pressures in the Eurozone are at low levels, with no significant signs of liquidity stress, and the market is operating smoothly overall.