The CBPP3 portfolio shrank €81m last week, as the programme was hit by high redemptions for the third successive week.

According to data released by the European Central Bank on Monday relating to settled and outstanding purchases under its various programmes, the CBPP3 portfolio contracted €81m in the week to last Friday, versus a marginal €61m increase the previous week.

The decrease in the portfolio is on the back of elevated redemptions, which, at around €1.3bn, maintained their level from the previous week. For the past three weeks, CBPP3 redemptions have ranged from around €1.3bn to €2bn, meaning that in the past two weeks the portfolio has shrunk €20m, from €286.724bn to €286.704bn.

“The chunky reinvestment of redemptions by the CBPP3 in October remains the most important explanation for the virtually zero additions to the CBPP3 holdings,” said ING analysts.

Gross purchases of €1.219bn were €142m lower than €1.361bn the previous week.

A €500m My Money Bank SCF (MMB SCF) deal constituted the only CBPP3-eligible supply settling. Central banks and official institutions were allocated €50m of the transaction, meaning that at least €1.169bn of CBPP3 purchases were made in the secondary market last week.

Some €1.75bn of eligible supply is due to settle this week.

Aggregate gross APP and PEPP purchases of €31.453bn were €2.459bn higher than €28.994bn the previous week, making it the highest weekly aggregate gross purchases since the week ending 17 July.