The CBPP3 portfolio grew for the fourth week in a row last week, but only a modest €273m, as a rise in the volume of redemptions outweighed an increase in primary market purchases, with the pace of secondary market purchases almost unchanged.

According to data released by the European Central Bank on Monday relating to settled and outstanding purchases, the CBPP3 portfolio increased €273m in the week to last Friday, from €288.952bn to €289.225bn. This is €18m less than the €291m net increase the previous week.

In spite of the “meagre” net purchases, ING analysts noted positively that it was the fourth consecutive week of growth in the CBPP3 portfolio.

Growth was constrained by around €700m of CBPP3 redemptions last week, €100m more than the previous week.

Gross purchases were €973m, €82m higher than the previous week’s €891m, but still below the €1bn level that was consistently surpassed in the four weeks from 11 January.

The modest rise in gross purchases may reflect a rise in the volume of CBPP3-eligible issuance settling, from €500m the previous week to €750m last week, in the form of a €750m 15 year Caffil transaction. Central banks and official institutions were allocated 19% (€142.5m) of this, and Crédit Agricole analysts estimated the Eurosystem took €112.5m (15%), €36.5m more than the €76m of primary market purchases they assumed for the CBPP3 the previous week.

Their estimates imply average daily secondary market purchases of €172m per day, slightly up on the €163m and €166m of the previous week and the week before that, respectively, but down on the €230m average for the three full weeks of January.

No CBPP3-eligible issuance is due to settle this week. With the launch of a €500m NN Bank benchmark yesterday (Tuesday) and a €300m RLB Vorarlberg sub-benchmark today (Wednesday), at least €800m will settle next week.