ECB to reveal details on TLTRO 3?
- The European Central Bank announced its easy-money exit strategy one year ago, but twelve months on, the world couldn't look more different.
- With dovish policy signals being broadcast across the globe, the ECB's Governing Council meeting in Vilnius will be the event of the day.
- Traders are now betting on a cut in the next year, only months after a raise had been the consensus, and hopes are high for more details on what its renewed TLTRO program will look like.
- "The conceivable range for the spread (for the negative rate) is between 0 bps and -40 bps," said Natixis's Dirk Schumacher. "A small spread would imply that the new TLTROs are predominantly meant to provide a backstop. A high spread would signal that the ECB sees a need to stimulate bank lending."
- Euro +0.2% to $1.1237.
- ETFs: FXE, EUO, OTC:ERO, DRR, ULE, EUFX, URR, DEUR, UEUR