ECB Pandemic Loans Start Slow as June in Focus: Liquidity Watch
- Banks alloted just 851 million euros at first PELTRO operation
- Carry trades to return with ECB’s June TLTRO loan facility
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Demand for the European Central Bank’s latest loan offering to tackle the pandemic shows funding markets in the region may be locked in a holding pattern until a bigger issuance due next month.
Banks took 851 million euros ($932 million) Wednesday from the first of the so-called Pandemic Emergency Longer-Term Refinancing Operations, or PELTRO, at an interest rate 25 basis points below that on the ECB’s main refinancing operations, currently at 0%.