TD calls the EUR1,308bln in TLTRO III.4 take....>

ECB: TD calls the EUR1,308bln in TLTRO III.4 take up "a success": "In terms of

market reaction, peripherals did lose some of their early morning gains.

However, we think it was primarily driven by pre-positioning...next few sessions

could see some profit taking trades in the front end as markets have been hyped

about this since April."

- TD sees front-end rates being supported by the additional liquidity, with

peripheral EGBs set to be "clear winners of these loans to play carry trades"

(though near-term neutral on EGB v Bund spreads).

- Nordea says the TLTRO outcome "supports the trend towards lower ESTR, a lower

6- and 12-month Euribor, tightening of peripheral and semi-core govie spreads,

and a slightly stronger EUR."

- Pictet's Frederik Ducrozet: "This is unlikely to be the end of the story. The

ECB can always adjust TLTRO conditions, including the lowest interest rate by

June 2021, depending on the economic outlook. The ECB made history with dual

rates TLTRO. The Last Tool Really Operational."