Gross CBPP3 purchases in September hit their highest level since February, with the Eurosystem buying some Eu5.386bn following a post-summer revival of issuance and increase in liquidity. Purchases registered last week almost doubled from the previous week, up to around Eu1.5bn.

ECB figures released on Monday show that in September net purchases under CBPP3 totalled Eu4.086bn, taking the total from Eu227.788bn to Eu231.314bn, incorporating a quarter-end amortisation adjustment of Eu560m. Given redemptions in the portfolio of around Eu1.3bn last month, gross CBPP3 purchases totalled around Eu5.386bn.

“Adding all those different elements together, we get a month that saw substantially more activity in primary as well as secondary buying,” said Florian Eichert, head of covered bond and SSA research at Crédit Agricole.

September’s figures are up from a net increase of Eu2.686bn and gross purchases of Eu2.986bn in August, which was the second quietest month for the purchase programme amid a lack of eligible issuance and lower liquidity during the summer period.

On the back of higher issuance and the renewal of market activity, net CBPP3 portfolio growth in September was the highest since May – when the portfolio grew Eu3.553bn – and gross purchases the highest since February – when purchases totalled around Eu5.531bn.

In the week to last Friday, the CBPP3 portfolio grew Eu551m, from Eu230.763bn to Eu231.314bn. Redemption figures released yesterday (Wednesday) afternoon show that some Eu400m of CBPP3 holdings matured. When these redemptions and the Eu560m quarter-end amortisation adjustment are taken into account, gross purchases totalled some Eu1.511bn last week.

This compares with a net increase of Eu784m and gross purchases of around Eu884m in the previous week.

Analysts estimated that Eu500m-Eu600m of last week’s CBPP3 purchases were made on the primary market, implying that secondary market purchases averaged some Eu182m-Eu202m per day, compared with around Eu177m in the previous week.