The Eurosystem maintained heavy purchases across both APP and PEPP last week, even though gross purchases were down some €6.3bn from the record high recorded the previous week, while CBPP3 purchases were steady.

According to data released by the European Central Bank relating to settled and outstanding purchases under its various programmes, the Pandemic Emergency Purchase Programme (PEPP) grew €28.878bn in the week to last Friday (15 May), €5.219bn less than the €34.097 increase the previous week. Gross APP purchases were €28.878bn, taking into account redemption figures released yesterday (Tuesday) afternoon, bringing aggregate Eurosystem purchases across the two programmes to €44.229bn, down €6.299bn from €50.528bn the previous week.

“Adding in the PEPP, overall ECB net settlements last week were stable at €43.3bn (vs. €44.8bn the week before), still close to €9bn per day,” noted Florian Eichert, head of covered bond and SSA research at Crédit Agricole CIB.

Last week’s net APP increase of €14.451bn was up €3.720bn from €10.371bn the previous week – redemptions were only around €0.9bn, compared with some €5.6bn the previous week.

Gross CBPP3 purchases rose slightly, by €6m, from €1.024bn to €1.030bn, while no covered bonds in the CBPP3 portfolio matured for the second consecutive week.

CBPP3’s share of last week’s net APP increase was around 7%, and Maureen Schuller, head of financials research, ING, noted that the CBPP3 share for net APP so far in May is 7.6%, down from an average of 8.4% in March/April.

“At least the low end of the €1bn to €1.5bn weekly purchase range was maintained,” she said, “even though the contribution of the CBPP3 to the asset purchase total has thus far seen a further decline this month.”

However, the full extent of CBPP3 purchases is still unknown given the ECB is yet to release a breakdown of its PEPP purchases, which are reported on an aggregated basis. The ECB has said it will begin more granular reporting on the programme next month.

No CBPP3-eligible supply settled last week, compared to €1bn for the previous week.