The key event this week is Wednesday LTRO 2 injection of liquidity by the ECB. Major trading desks and bank analysts now see total uptake that will be close to what we saw in December. Market participants can respond in two main ways to the release - use it as a catalyst to further the risk rally we have seen since January, or use this is an event to "buy the rumor, sell the news" and sell risk following this key event. We examine these responses as well as look at the impact the first LTRO had on the EUR/USD and Italian 10-year yields. (full story)