CBBP3 last week recorded its lowest gross purchases in a full five day working week since the programme began, with the Eurosystem buying just Eu408m of covered bonds on the secondary market while no eligible issuance settled amid the summer slowdown.

ECB figures show that the CBPP3 portfolio grew Eu408m, from Eu224.632bn to Eu225.040bn, in the week to last Friday. Portfolio redemption figures released yesterday (Tuesday) afternoon show that no CBPP3 holdings matured last week, meaning that the gross purchases are the same as the net increase.

These are the lowest gross purchases in a full five day week since the programme began, with lower purchases only recorded in weeks shortened by public holidays or the programme’s suspension around the Christmas/New Year period. The figure is also less than half of the Eu862m bought the previous week.

The fall in settlements was attributed to a lack of any eligible issuance and secondary market liquidity in the summer period.

With no CBPP3-eligible issuance having settled last week, the Eurosystem’s secondary market purchases therefore averaged Eu81.6m per day, down from around Eu92m in the previous week.

As of last Friday and with only one business day of the month remaining, the CBPP3 portfolio had increased Eu2.410bn since the start of July. Taking into account redemptions in the portfolio of around Eu900m, gross purchases totalled around Eu3.310bn.

With only Monday’s purchases to add to this figure, July is set to be the slowest month in terms of gross purchases under CBPP3 since December, when the Eurosystem bought around Eu2.269bn of covered bonds – the programme’s record low. Total July portfolio growth will be reported next Monday.