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BOOM: ECB Liquidity Operation Sees Massive Demand

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This morning saw the results of the ECB's massive liquidity operation.

The operation -- which has been the subject of intense chatter and speculation for the last couple of weeks in Europe -- allowed banks to borrow super-cheap money for up to 3 years while putting up a wide range of collateral of varying qualities.

The operation has seen over 500 banks tender 489 billion EUR in collateral.

You can see the full results here.

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This is at the very high end of expectations. Some firms had expected half this.

What it means is that there's been a jolt of liquidity in the system, a very big increase in the ECB's balance sheet (QE anyone?) and the potential for banks to use some of this cash to buy sovereign debt, although that's a little dicey.

ORIGINAL POST: Should be any minute now.

Results from the ECB's latest liquidity operations are supposedly coming out imminently.

We'll have the full coverage here.

You can read a full preview here.

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