With expectations around EUR300bn, the EUR489bn print is well above expectations.
ECB ALLOTS EU 29.7BLN IN 98 DAY REFINANCING TENDER
ECB AWARDS EU489 BLN IN THREE-YEAR LOANS VS EST EU293 BLN
ECB SAYS 523 BANKS ASKED FOR THREE-YEAR LOANS
The initial reaction seems to be risk on as EUR is rallying. Gold and Silver are also rallying. Stocks and CONTEXT rallying but BTPs not reacting aggressively yet.
The story of the day: The results of the ECB's LTRO. The LTRO basically is this: The ECB has made it so that stressed Eurozone banks can pledge a wide range of capital in exchange for super-cheap funding that lasts three years. The ... Read Post
By EconMatters The recent massive demand for ECB's LTRO (Long Term Refinancing Operation)--nearly 490 billion euro in three-year 1% loans from 523 banks--only confirmed the suspicion of some market participants that European banks a... Read Post