EU
#Eurozone banks jump, Italian yields fall on report #ECB discussing new cheap bank loans
Eurozone bank shares jumped and Italian government bond yields fell on Wednesday after Bloomberg reported the European Central Bank is holding discussions on the design of new ultra-cheap bank loans, write Helen Reid and Virginia Furness.
The ECB met on Thursday (7 March) amid speculation that it is getting ready for a fresh round of stimulus via cheap bank loans.
The loans known more formally as Targeted Long-Term Refinancing Operations (TLTROs) are expected to boost troubled eurozone lenders. The eurozone banks index rose to a day’s high, up 0.2%.
Italian government bond yields also briefly extended falls as investors cheered the report. Italy’s 10-year government bond yield touched its lowest level in just over a month at 2.661% and was last down 4 basis points on the day.
The euro fell to a two-week low at around $1.12855.
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