The CBPP3 portfolio grew Eu1.68bn last week, with the pace of purchases slowing on the back of a fall in issuance and lower secondary market buying. Analysts said monthly CBPP3 settlements in January increased slightly from lows at the end of 2015, but said the figures still suggest Eurosystem buying is being moderated.

ECB figures released yesterday (Monday) afternoon show that settled and outstanding purchases under CBPP3 grew from Eu148.857bn to Eu150.537bn in the week to last Friday. This compares with portfolio growth of Eu2.851bn in the previous reporting period.

Only Eu2.5bn of CBPP3-eligible supply settled last week, after issuance slowed in mid-January. Analysts estimated that the Eurosystem bought Eu1bn-Eu1.1bn of the two deals.

Assuming no redemptions, this implies the ECB bought on average Eu110m-Eu133m per day on the secondary market. Analysts noted that the secondary market purchases therefore decreased compared with the average of around Eu165m in the previous week.

Month-end figures also released by the ECB yesterday showed that 72.86% of the CBPP3 portfolio had been bought on the secondary market as of 31 January, and 27.14% on the primary market.

Analysts noted that the CBPP3 portfolio grew by Eu7.197bn in January, a slight increase from purchases in November and December of last year, but, they added, well below the average of around Eu11bn per month in the first half of 2015.

“This further highlights that the Eurosystem is rebalancing its QE purchases,” said Jussi Harju, covered bond analyst at Barclays.

Separate ECB figures show that the public sector purchase programme (PSPP) portfolio increased Eu14.518bn to Eu544.17bn in the week to last Friday, compared with portfolio growth of Eu14.483bn in the previous week, while the asset backed securities purchase programme (ABSPP) portfolio increased Eu1.8bn to Eu17.586bn.

Joost Beaumont, senior fixed income strategist at ABN Amro, noted that it is the first time in an active week of purchases under the ECB’s asset purchase programme (APP) that ABSPP buying has outpaced CBPP3 buying.

“This was likely due to settlement of the Storm 2016-1 transaction, while it could also reflect the impact of the central bank’s more direct investor approach in order to boost the ABSPP,” he said.

The CBPP3 portfolio grew Eu1.68bn last week, with the pace of purchases slowing on the back of a fall in issuance and lower secondary market buying. Analysts said monthly CBPP3 settlements in January increased slightly from lows at the end of 2015, but said the figures still suggest Eurosystem buying is being moderated.

ECB figures released yesterday (Monday) afternoon show that settled and outstanding purchases under CBPP3 grew from Eu148.857bn to Eu150.537bn in the week to last Friday. This compares with portfolio growth of Eu2.851bn in the previous reporting period.

Only Eu2.5bn of CBPP3-eligible supply settled last week, after issuance slowed in mid-January. Analysts estimated that the Eurosystem bought Eu1bn-Eu1.1bn of the two deals.

Assuming no redemptions, this implies the ECB bought on average Eu110m-Eu133m per day on the secondary market. Analysts noted that the secondary market purchases therefore decreased compared with the average of around Eu165m in the previous week.

Month-end figures also released by the ECB yesterday showed that 72.86% of the CBPP3 portfolio had been bought on the secondary market as of 31 January, and 27.14% on the primary market.

Analysts noted that the CBPP3 portfolio grew by Eu7.197bn in January, a slight increase from purchases in November and December of last year, but, they added, well below the average of around Eu11bn per month in the first half of 2015.

“This further highlights that the Eurosystem is rebalancing its QE purchases,” said Jussi Harju, covered bond analyst at Barclays.

Separate ECB figures show that the public sector purchase programme (PSPP) portfolio increased Eu14.518bn to Eu544.17bn in the week to last Friday, compared with portfolio growth of Eu14.483bn in the previous week, while the asset backed securities purchase programme (ABSPP) portfolio increased Eu1.8bn to Eu17.586bn.

Joost Beaumont, senior fixed income strategist at ABN Amro, noted that it is the first time in an active week of purchases under the ECB’s asset purchase programme (APP) that ABSPP buying has outpaced CBPP3 buying.

“This was likely due to settlement of the Storm 2016-1 transaction, while it could also reflect the impact of the central bank’s more direct investor approach in order to boost the ABSPP,” he said.