Bad Is Good in Europe

Bad is Good in Europe

This morning the ECB released it’s first tranche of TLTRO funding, and it flopped, badly.  Takedown by banks of the offer was just 82.6 billion euro, a little over half of the 150 billion that was expected.

But, this low figure is seen as only further increasing the likelihood that the ECB will have to eventually launch a large scale QE program  – and European markets are all sharply higher on the news.