12 Dec 2014
Weak TLTRO gives boost to ECB’s bond buying – Investec
FXStreet (Barcelona) - The Investec Research Team, notes that yesterday’s below than expectation TLTRO allotment of EUR 129.8bn indicates that ECB is more likely to buy sovereign bonds in Q1 2015.
Key Quotes
“Yesterday’s second round of cheap loans from the ECB had a disappointing uptake. TLTROs (or Targeted longer-term refinancing operations as they are otherwise known) had a total uptake off EUR 129.8bn disappointing the market which had expectations of EUR 150bn to 180bn.With previous LTROs expected to be paid back and this TLTRO a touch disappointing, the ECB are much more likely to need to buy sovereign bonds in Q1 next year – this saw EUR selling on the day”
Key Quotes
“Yesterday’s second round of cheap loans from the ECB had a disappointing uptake. TLTROs (or Targeted longer-term refinancing operations as they are otherwise known) had a total uptake off EUR 129.8bn disappointing the market which had expectations of EUR 150bn to 180bn.With previous LTROs expected to be paid back and this TLTRO a touch disappointing, the ECB are much more likely to need to buy sovereign bonds in Q1 next year – this saw EUR selling on the day”