CBPP3 outstandings increased Eu2.951bn last week, ahead of the first buying of government bonds under the European Central Bank’s public sector purchase programme (PSPP) yesterday (Monday).

Monday’s CBPP3 figure, published by the ECB yesterday afternoon, takes the total volume of purchases settled and outstanding under the third covered bond purchase programme as of Friday to Eu54.159bn, up from Eu51.208bn at the end of the previous reporting period.

Four CBPP3-eligible primary market deals settled last week, a Eu500m Raiffeisenlandesbank Niederösterreich-Wien 10 year, a Eu500m Dexia Kommunalbank seven year, a Eu1bn Banco Popolare seven year, and a Eu1bn Landesbank Hessen-Thüringen five year, taking total eligible supply to Eu3bn.

Jussi Harju, covered bond analyst at Barclays, estimated that the Eurosystem was allocated Eu850m of the four deals, suggesting CBPP3 secondary market settlements last week totalled Eu2.1bn.

“This implies that the Eurosystem was less aggressive in the secondary market,” he said. “The estimated secondary purchases declined to Eu421m per day from Eu453m per day in the previous reporting period.”

“It appears that the Eurosystem slowed down its secondary purchases again for the second week running as it was getting ready for PSPP to start,” he added.