CBPP3 purchases fell to a new low for a second consecutive reporting period in the week to last Friday, with the portfolio increasing by just Eu1.12bn, while PSPP buying also fell to a record low as the holiday season continued to curb activity.

European Central Bank figures released yesterday (Monday) showed that settled and outstanding purchases under the third covered bond programme increased Eu1.12bn to Eu109.179bn last week.

Coming in below the Eu1.414bn of the preceding reporting period, the latest increase is the programmes new lowest weekly total, apart from figures relating to the first days after CBPP3’s launch and two weeks at the turn of the year when the programme was suspended.

The increase related only to secondary market settlements, with no public CBPP3-eligible primary deals having settled last week. Average secondary settlements therefore fell to Eu224m per day, around half of the programme’s average, analysts said.

They attributed the slowdown to a continued lull in market activity during the holiday period, and, noting that the only CBPP3 eligible deal to settle this week is a Eu200m tap of a Crédit Agricole November 2022 issue, predicted next week’s portfolio growth would remain at around Eu1.1bn or be slightly higher.

Meanwhile, buying under the public sector purchase programme (PSPP) also fell to a new low last week, with the portfolio increasing Eu9.886bn, down from Eu10.177bn in the previous reporting period. Analysts noted it was the first time daily PSPP purchases, at Eu1.977bn, slowed to below Eu2bn per day on average.