Key points for this month:
- The figures of the ECB’s QE are more and more distorted by the redemptions/reinvestments and calculations are becoming less accurate.
- The share of German bonds in the PSPP hit a new low at 25.3% (but is still only just below Germany’s theoretical weight). The Eurosystem is close to owning €450 bn of German securities. The share of Irish securities has rebounded strongly.
- The average maturity of German purchases in November fell back to 6.8 years (estimation). The average maturity of purchases has been higher in France (10.6 years), Italy (8.3 years) and Spain (8.5 years).
- The PSPP redemptions will account for €104 bn in the 12 coming months. They will be particularly important in April (23 bn).
- The Eurosystem will pause APP purchases from 21 December to 29 December and. Purchases will resume on January 2.
- Banks’ excess reserves hit €1.9 trn for the first time.
- The Eurosystem’s balance sheet account for 39% of GDP and is close to become the biggest in the world in dollar terms (more than €4.4trn).
December 05, 2017