CBPP3 purchases last week registered a fall of almost half from the previous week’s gross buying, ECB figures show, despite the ECB having stated that it aims to frontload APP purchases from 29 November to 21 December, with the low figure attributed by analysts to a lack of new issuance.

Figures released on Monday show that settled and outstanding purchases under CBPP3 increased Eu274m, from Eu203.418bn to Eu203.692bn, in the week to last Friday. Redemption figures published yesterday (Tuesday) afternoon show that around Eu400m of CBPP3 holdings matured last week, implying gross purchases of around Eu674m. Gross purchases therefore almost halved from the Eu1.214bn bought in the previous week.

Analysts attributed the fall to there being no CBPP3-eligible issuance settling last week, whereas Eu1.5bn settled in the previous week, of which the Eurosystem was thought to have purchases around Eu600m.

The lack of primary market settlements implies that gross secondary market purchases averaged Eu134.8m per day last week, compared with Eu122m in the previous week.

This week will be the last full week of Eurosystem purchases this year, as the ECB will temporarily pause the asset purchase programme (APP) on Thursday of next week (22 December). Purchases will resume on 2 January.

The ECB has said its QE buying will be frontloaded during the period 29 November to 21 December, to take advantage of expected “relatively better market conditions” before the holiday hiatus.

The pace of public sector purchase programme (PSPP) buying increased last week, with the portfolio growing  Eu16.32bn, compared with Eu14.516bn in the previous reporting period. Buying under the corporate sector purchase programme (CSPP) fell, with Eu1.663bn settled after Eu2.012bn in the previous week.

Although covered bond purchases fell last week, November was CBPP3’s busiest month in the second half of the year.

Photo credit: ECB/Flickr