The highest level of CBPP3 purchases since June were recorded last week, with the Eurosystem buying some Eu2.171bn on the back of a jump in eligible new issuance, while secondary market purchases remained only declined a little.

ECB figures released on Monday afternoon show that settled and outstanding purchases under CBPP3 increased Eu1.771bn, from Eu200.433bn to Eu202.204bn, in the week to last Friday. Redemption figures published yesterday (Tuesday) afternoon show that Eu400m of CBPP3 holdings matured last week, implying that gross purchases were around Eu2.171bn.

These are the highest weekly gross purchases since the week of 10 June. It compares with gross purchases of Eu917m in the previous week.

CBPP3 purchases have remained relatively low since the summer, with the drop off from previous volumes attributed to the Eurosystem finding it difficult to source bonds, low issuance, and the programme’s declining importance given higher purchases under the corporate sector purchase programme (CSPP).

The ECB had earlier announced that its QE buying will be frontloaded during the period 29 November to 21 December, to take advantage of expected “relatively better market conditions” before a pause in purchases from 22-30 December, when liquidity is expected to be lower.

Some Eu4bn of CBPP3-eligible issuance settled last week, of which analysts estimated the Eurosystem bought Eu1.5bn-Eu1.6bn. This implies that gross secondary market purchases averaged around Eu115m-Eu135m per day, compared with Eu150m per day in the previous week.