ECB: Expect a take-up of about EUR250bn in final TLTRO – Danske Bank

Analysts at Danske Bank points out that the results of the fourth and final ECB TLTRO are due to be announced today and they expect a take-up of about EUR250bn, which is a significantly higher figure compared to the first three auctions.

Key Quotes

“We expect higher demand at the final auction because (1) banks have increased information on the interest, (2) it is the final opportunity to acquire liquidity with an interest rate no higher than 0%, (3) markets are pricing in an increasing probability of an ECB hike, making the TLTRO II more attractive and (4) French banks could demand extra liquidity ahead of the election.”