The European Central Bank this week reported Eu696m of purchases under its second covered bond purchase programme, the third highest weekly aggregate, lifting total buying 11% to Eu6.976bn.

The two biggest increases this week corresponded to settlement dates of last Friday (17 February) and this Tuesday, with Eu229m and Eu201m rises, respectively, reported on Monday and Wednesday (purchases are reported the day after settlement). Eligible deals to have settled last Friday were Banesto Eu500m four year and Santander Eu2bn three year benchmarks, while a Compagnie de Financement Foncier Eu2bn three year closed on Tuesday.

Central banks and official institutions were allocated 8% (Eu40m) of Banesto’s issue, 9% (Eu180m) of Santander’s, and 15% (Eu300m) of CFF’s. These figures do not necessarily only capture Eurosystem buying under CBPP2. Indeed, the central bank/official institutions share of CFF’s distribution is higher than the increase reported by the ECB for the day on which it settled. CBPP2 purchases are made in the primary and secondary markets.

The biggest previous weekly totals were those for the week of 21 November – the second week of CBPP2 – and 16 January – corresponding to the burst of new issuance at the start of the year.

This week’s big increase comes after a Eu435m rise disclosed last Friday, corresponding with settled purchases from the previous day (Thursday 16 February), which would have included any buying of deals for Banco Sabadell, BPCE SFH and CaixaBank that closed that day.

Eligible benchmarks yet to settle include a Eu500m two year Bankia deal and a Eu500m seven year Deutsche Bank Pfandbrief issued this Wednesday. Eurosystem buying accounted for about 10% (Eu50m) of Bankia’s deal and 9% (Eu45m) of Deutsche’s, according to syndicate officials on the respective issues. Bankia settles next Wednesday and any CBPP2 buying would be reflected in the ECB’s reporting on Thursday, with Deutsche a day later.