Gross CBPP3 purchases last week hit their second highest level since new net purchases resumed under the programme last year, nearing €2bn, with Eurosystem activity rising in line with new issuance and bolstered by continued relatively high secondary market buying.

According to data released by the European Central Bank relating to settled and outstanding purchases under its various programmes, the CBPP3 portfolio grew €1.745bn in the week to last Friday, its highest weekly net increase since the week ending 24 January.

Gross purchases of €1.945bn – given €0.2bn of redemptions – are the highest weekly gross purchases since the same January week. They are €452m higher than the €1.493bn the previous week, which was in turn the highest since the week ending 17 April, and since the beginning of September, gross CBPP3 purchases have risen successively week on week.

“The high purchases number can be explained by the high €4.75bn in primary settlements in that week, the third largest primary settlement week of this year,” said Maureen Schuller, head of financials sector strategy at ING.

Joost Beaumont, senior fixed income strategist, ABN Amro, noted that while the strong pick-up in CBPP3 was largely driven by higher purchases in the primary market, an estimated €1bn was still purchased in the secondary market, a relatively high amount.

“It shows that the Eurosystem is fully back in the game,” he said, “reflecting that it also still needs to reinvest €12bn of maturing principals before year-end, on top of net purchases needed to reach the monthly QE targets.”

No new euro benchmarks were launched last week, while a thin covered bond pipeline may signify a similarly quiet week for eligible settlements next week.

“It seems unlikely that new euro benchmarks will arrive before the end of Q3,” added Beaumont.

Aggregate gross APP and PEPP purchases of €31.113bn were €662m higher than €30.451bn the previous week, making it the highest weekly aggregate gross purchases since the week ending 17 July.

On Monday the ECB will release its third bi-monthly breakdown of PEPP purchases by asset class, detailing buying in August and September.