Net growth in the CBPP3 portfolio increased last week in spite of a fall in primary market settlements, with settled and outstanding purchases up Eu1.180bn, reflecting some Eu1.4bn of purchases and Eu0.2bn of redemptions, according to figures released today (Tuesday).

European Central Bank figures released yesterday (Monday) afternoon show a net increase in settled and outstanding purchases under the third covered bond purchase programme of Eu1.18bn, up from Eu176.206bn to Eu177.386bn, in the week to last Friday. In the previous reporting period, the portfolio grew a net Eu907m.

Eu1bn of CBPP3-eligible issuance settled last week, of which analysts estimated the Eurosystem bought around Eu225m-Eu240m – compared with some Eu375m-Eu420m of primary settlements in the previous reporting period.

Analysts noted last week that a recent increase in the amount of bonds maturing in the CBPP3 portfolio had made secondary market settlements appear artificially low. A record Eu600m of bonds in the portfolio matured in the week ending on 20 May, and Eu500m in the previous reporting period.

Redemption figures for the purchase programme portfolios are released weekly, usually on Tuesdays, and today ECB figures showed Eu0.2bn of redemptions for the CBPP3 portfolio (with figures only given to one decimal place) and Eu1.4bn of purchases making up the net figure of Eu1.180bn.

Analysts also noted that purchases under the overall asset purchase programme (APP) increased Eu20.477bn last week. In the previous two weeks settlements remained below Eu20bn in spite of the Eurosystem’s monthly QE target having been raised from Eu60bn to Eu80bn as of 1 April.