In my previous article on LTRO I, I noted that the Euribor was manipulated lower to make it easy to lend (Chart 1).
|Chart 1: 3 Month Euribor|
But it wasn't working out for the markets, because all the money was kept at the ECB deposit facility (Chart 2).
|Chart 2: ECB Deposit Facility|
Then, we got the interest rate cut of the ECB, and that lowered the Euribor another step from 0.64% to 0.55% as witnessed on Chart 1 (see the little spike downwards).
So what does all this mean for you? Read the analysis here.