The ECB last week registered a week on week increase in gross covered bond purchases of EUR159m, and a return to positive net purchases, on the back of “very respectable” secondary market buying amid the still-dormant summer market.

ECB figures released on Monday show the CBPP3 portfolio increased EUR474m in the week to last Friday, from EUR256.184bn to EUR256.658bn Figures released yesterday (Tuesday) afternoon show that no CBPP3 holdings matured last week.

Gross purchases were therefore up from EUR315m but still well below the 2018 weekly average of EUR967m.

Net portfolio growth also increased, up from a negative EUR385m in the previous week, when around EUR700m of portfolio holdings matured.

No CBPP3-eligible deals settled last week. Secondary market purchases therefore averaged EUR94.8m per day, up from EUR63.0m per day in the previous week and the highest secondary market purchases since the week commencing 9 July.

“The slightly below EUR100m of secondary settlements per day is a very respectable figure for a quiet August with no new issuance,” said Florian Eichert, head of covered bond and SSA research at Crédit Agricole.