ECB Ready to Offset Banks’ Accelerated LTRO Payback
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The European Central Bank is poised to offset any acceleration in emergency loan repayments by the region’s banks to ensure reduced liquidity doesn’t undermine its monetary policy.
Two-year German yields climbed to a 10-month high as traders increased bets in January on higher money-market rates after lenders started repaying money disbursed by the central bank’s Longer-Term Refinancing Operations.