ECB QE Monitor - December 05, 2018

 

The Eurosystem started its QE in March 2015. The five main episodes have been:   March 9 2015 (decision to purchase €60 bn of assets per month until Sept. 2016), December 3 2015 (decision to extend the QE it until March 2017), March 10 2016 (decision to increase monthly purchases from €60 bn to €80 bn from April 2016) December 8 2016 (decision to extend the QE until December 2017 at a reduced monthly pace of €60bn). October 26 2017 (decision to extend the QE until September 2018 at a reduced monthly pace of €30bn) June 14 2018 (decision to announced the end of QE in December 2018)

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Key points for this month:

· Net APP purchases in November were stable at €15.3bn compared with October.

· PSPP

• The average maturity of bonds redeemed under the PSPP has more than doubled in France, Spain and Germany.
• Monthly purchases: €10.12bn (€9.9bn in October)
• PSPP monthly share of QE remained stable at 66% compared with October.
• As of 5 December 2018, the Eurosystem had bought €2,158bn of bonds under the PSPP.

· CSPP

• Monthly purchase: €2.9bn (€3.5bn in October)
• CSPP monthly share of QE decreases at 19% in November. The share of CSPP has increased in 2018.
• As of 5 December 2018, the Eurosystem had bought €179bn of Corporate bonds under the CSPP.

Capital key deviation: The trend was completely opposite for Spain by going back up. On the contrary, France and Italy increased this month. On the contrary, France and Italy increased this month.

· Reinvestment:

• PSPP Redemption in September €4.758bn (after €21.12bn in October).
• €171bn of PSPP redemptions until November 2019 (€14.2bn per month).
• Limited reinvestment on the CSPP: €6.1bn of CSPP redemptions until November 2019 (€0.5bn per month).

 

Amundi Research
December 05, 2018