CBPP3 portfolio growth slowed last week on the back of a fall in both primary and notably secondary market buying, with settled and outstanding purchases increasing Eu2.155bn.

Figures released by the European Central Bank yesterday (Monday) afternoon show the CBBP3 portfolio increased from Eu116.107bn to Eu118.262bn in the week to last Friday. This compares with a Eu3.892bn increase in the previous reporting period – one of the programme’s largest week’s increases – when 10 CBPP3-eligible new issues settled.

Estimating that the Eurosystem bought Eu1.4bn-Eu1.75bn of primary market deals with settlement dates last week, analysts noted that the pace of secondary purchases had slowed further after falling in the previous reporting period. Joost Beaumont, senior fixed income strategist at ABN Amro, put average daily secondary purchases at Eu150m, which he said is the lowest rate so far this year.

“This should most likely be seen as payback for the large amount of purchases in the previous week,” he said. “Furthermore, it could reflect a stronger focus on the primary market, given the strong pick-up in new supply.”

Meanwhile, the public sector purchase programme (PSPP) portfolio increased Eu12.249bn to Eu326.718bn last week, compared with growth of Eu13.022bn in the previous reporting period.

“Although this is down from a Eu13.022bn flow the week before, it is still the second highest weekly purchase amount in over 15 weeks,” said analysts at Citi. “This suggests a return to a more even monthly flow of Eu47bn-Eu48bn in PSPP following the drop in August and rise in May-July.”