The CBPP3 portfolio registered its largest increase in two months last week, growing €1.264bn, in conjunction with the highest eligible supply over a similar period, while redemptions were subdued. Gross aggregate Eurosystem purchases meanwhile increased slightly at elevated levels.

According to data released by the European Central Bank relating to settled and outstanding purchases under its various programmes on Monday, the CBPP3 portfolio grew €1.264bn in the week to last Friday – from €286.435bn to €287.699bn – €1.015bn more than a €249m increase the previous week.

Given redemptions decreased to around €300m, gross purchases were €1.564bn, €615m higher than €949m the previous week. This constitutes the highest weekly gross purchases since the week ending 25 September when net and gross purchases previously crested at €1.745bn and €1.945bn, respectively, on the back of a busy primary market and low redemptions.

As well as a fall in redemptions, last week’s increase was attributed to an increase in CBPP3-eligible supply settlements, which were up from €500m to €2.25bn, across deals from OP Mortgage Bank, Bawag PSK and de Volksbank.

Crédit Agricole analysts estimated the Eurosystem bought €431m of this supply, implying average daily gross secondary market purchases of €227m, around the average since the end of the summer lull.

This week, €1.25bn is due to settle across two deals, from Oma Savings Bank and Rabobank.

Aggregate gross APP and PEPP purchases of €33.942bn last week were €111m higher than the €33.831bn of the previous week, and the highest since the week ending 10 July.