CBBP3 portfolio growth eased last week as the Eurosystem scaled back secondary market purchases, confirming an expected summer slowdown in QE, with the corporate sector purchase programme the only part of the APP to increase in pace.

ECB figures released on Monday show that settled and outstanding purchases under the third covered bond purchase programme increased Eu746m, from Eu186.634bn to Eu187.38bn, in the week to last Friday, while portfolio redemption figures released yesterday (Tuesday) afternoon show that no CBPP3 holdings matured last week. This compares with net purchases of Eu593m and gross purchases of Eu993m in the previous reporting period.

With no CBPP3-eligible issuance settling last week, secondary market purchases averaged Eu149m per day, down from around Eu170m in the previous reporting period.

The Eurosystem’s asset purchase programme (APP) buying had been expected to fall this month, with issuance and market liquidity drying up during the summer holiday period and after frontloading in April, May and June.

Public sector purchase programme (PSPP) portfolio growth also slowed, from Eu16.452bn in the previous week to Eu12.414bn last week, while the asset-backed securities purchase programme (ABSPP) portfolio shrank Eu69m, having grown by Eu149m in the previous week.

The corporate sector purchase programme (CSPP) was the only programme under which the pace of purchases increased, from Eu1.365bn to Eu1.764bn.