FT Alphaville " LTRO.2 €530bn [updated] That's €530bn with 800 bidders - 277 more than participated last time, when the uptake was €489bn. For reference, here's the first Ltro: As a reminder, December sum was "only" €193bn of new liquidity. We'll update with analyst reaction as it comes in. But at pixel time market reaction was nonexistent. Update 10:40am London time Reaction from NewEdge on the size of the Ltro and how much net liquidity it has provided: The ECB second 3y LTRO has been successful, with another EUR 529.5bn bid vs a median estimate for EUR 470bn. At a first glance, it looks like today's LTRO refi auction injected another EUR 250-300bn cash in the system (if we look at the the reinvestment flows at the previous "shorter" Refi auctions in the past few weeks). Concerning whether going to the ECB for three year loans is a good or bad thing: A high number of banks bid at today's auction (800), a sign that the "stigma" associated to the auction has somehow dissipated. Opportunity Carry trades and the relaxation of the collateral criteria have certainly be key factors supporting the auction today. Further tightening in EMU periphery spreads can be expected now. That said, they don't think the market reaction will be as pronounced as it was with the first Ltro. Related links: Ltro coverage - FT Alphaville This entry was posted by Lisa Pollack on Wednesday, February 29th, 2012 at 10:35 and is filed under Capital markets. Tagged with ecb, LTRO.