CBPP2 beats required run rate for first time, tops Eu5bn
The European Central Bank this (Friday) morning disclosed a Eu299m increase in settled purchases under its second covered bond purchase programme, taking the total to Eu5.074bn, making this the first week in which reported buying has breached the average rate necessary for the Eu40bn target to be hit on time.
The increase takes this week’s aggregate increase to Eu1.692bn, making it the first week of reporting in which CBPP2 has increased by more than the average weekly rate necessary for the Eurosystem to hit its Eu40bn target by the time it is scheduled to end in October – indeed the increase is more than twice that rate.
Today’s increase will have captured CBPP2 purchases of a Eu1bn 10 year Compagnie de Financement Foncier issue launched on 9 January that settled yesterday. A syndicate official at one of the leads said that this amount to 22% (Eu220m) of the benchmark.
A Eu558m increase yesterday (Thursday) – the second largest rise after a Eu704m increase on Wednesday – will have taken in any buying under CBPP2 of ABN Amro and Deutsche Pfandbriefbank benchmarks, as these settled on Wednesday. Central banks were reported by the deal’s leads to have bought 20% (Eu200m) of ABN Amro’s Eu1bn 10 year deal and 29% of pbb’s Eu500m (Eu145m) four year issue, although these percentages do not necessarily only capture buying under CBPP2 and may include purchases by non-Eurosystem central banks.
The only CBPP2 eligible public benchmark yet to settle is a BPCE SFH Eu850m 10 year deal that settles on Tuesday. Any CBPP2 buying of this would be reported in Wednesday’s ECB release and, according to the leads, central banks took 11% (Eu93.5m) of the transaction.
Click here for full, downloadable data on CBPP2 and a chart of daily and average purchases:
