Core European banks board TLTRO gravy train

By Bill Thornhill, Tyler Davies
18 Jun 2020

European Central Bank funding proved irresistible for lenders across the eurozone this week, with participation in the latest round of Targeted Longer-Term Refinancing Operations (TLTRO III) reaching a record €1.31tr. The astonishing take-up will cement expectations for fewer deals and more buy-backs in the FIG market, as well as the return of the government bond carry trade, write Tyler Davies and Bill Thornhill.

Market participants had been expecting huge involvement in the fourth tender for TLTRO III funding on Thursday. But that did not make the final turnout any less impressive.

A total of €1.31tr of new three year funding was handed out to 742 bidders, eclipsing the previous record ...

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