Settled outstandings under CBPP3 increased Eu2.458bn last week, ECB figures released yesterday (Monday) showed, while separate figures show the Eurosystem’s extended asset purchase programme (EAPP) reached its Eu60m monthly target in April.

Purchases settled and outstanding under the third covered bond purchase programme as of Friday were Eu2.458bn higher than a week previously, lifting the total volume from Eu72.612bn to Eu75.070bn.

Analysts observed that the increase was down from a Eu2.946bn rise in the previous reporting period, but noted the figure relates to a shortened week of secondary buying, with many jurisdictions on public holidays on Friday and therefore trades that were conducted on Wednesday not having settled in time for inclusion in the figures.

Adjusting for a four day week, analysts at Crédit Agricole calculated that daily settlements averaged Eu614m per day last week, compared with Eu589m the previous week, while secondary market settlements decreased from Eu531m to Eu435m per day.

“We would not yet want to attribute this to more difficulties for the ECB to find positions in secondary markets,” said Florian Eichert, senior covered bond analyst at Crédit Agricole, who noted that sizeable primary settlements may have led the Eurosystem to ease its secondary purchases.

The ECB also said that as of 30 April, Eu61.014bn (81.28%) of the CBPP3 portfolio was purchased on the secondary market, and Eu14.056bn (18.72%) on the primary market.

“This confirms that the ECB wants to leave room for real investors in the primary market but remains committed regarding size via aggressively buying in the secondary and retained market,” said Bernd Volk, head of covered bond research at Deutsche Bank.

Meanwhile, settled outstandings under the full EAPP increased Eu60.326bn last month, in line with the ECB’s monthly target of Eu60bn. CBPP3 purchases contributed Eu11.464bn towards the total, the ABS purchase programme (ABSPP) Eu1.162bn, and public sector purchase programme (PSPP) Eu47.7bn.