The CBPP3 portfolio grew some Eu3bn in the week to Friday, lifted by the third highest volume of settled primary market purchases, with heavy new issuance in October meaning that some 54% of the month’s buying was in the primary market.

Settled and outstanding purchases under the European Central Bank’s third covered bond purchase programme rose Eu3.011bn to Eu131.144bn as of Friday from Eu128.133bn a week earlier, according to figures released by the central bank yesterday (Monday) afternoon.

Analysts noted that the big increase came on the back of seven CBPP3-eligible euro benchmarks totalling Eu5bn settling in the relevant period. They variously estimated that the Eurosystem bought from around 40% to as much as 50% of this – implying average daily secondary market purchases of a little over Eu100m (one of the lowest daily secondary figures to date) to over Eu200m (or roughly half the average rate).

The ECB also released month-end figures on CBPP3 yesterday and these indicated a Eu9.993bn increase in the portfolio during October. The primary market’s share of this was 54%, according to analysts at Citi, making October only the second month in which new issues have accounted for the bulk of purchases, with the ECB having bought 65% of September’s total in the primary market but before that always having bought more in secondary.

October buying under the overall expanded asset purchase programme, at Eu63.7bn, was the highest month’s figure yet, according to the Citi analysts.

“Such above average purchases are to compensate for lower liquidity in December when purchases are expected to be lower,” they said.

The public sector purchase programme (PSPP) increased Eu10.567bn last week to Eu393.637bn, while the ABSPP fell Eu88m to Eu14.577bn.