HALISTER1: Little Impact on EUR Short End From Modest TLTRO-2 Demand: BNP

Little Impact on EUR Short End From Modest TLTRO-2 Demand: BNP

(Bloomberg) -- Expect relatively low demand of EU20b-EU30b at this week’s TLTRO-2 operation, which will have little impact on excess liquidity and rates at front end of EUR curve, BNP strategists including Patrick Jacq write in a client note.
  • Banks have already benefited from the first operation in this series to restructure their ECB-provided funding
  • TLTRO funds are good substitutes to covered bonds, but funding programs for this year are now almost fully completed
Alert: HALISTER1
Source: BFW (Bloomberg First Word)

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Patrick Jacq (BNP Paribas SA)

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