Key points for this month:
· Net APP purchases in May amounted to €31.6bn up from 30.6 in April.
- Monthly purchases: €24.2bn (€23.6bn in April)
- PSPP monthly share of QE was at 77% in line with April. The share of PSPP has declined in 2018.
- As of 1 June 2018, the Eurosytem had bought €1,991bn of bonds under the PSPP.
- Monthly purchase: €5.0bn (€3.1bn in April)
- CSPP monthly share of CSPP was at 16% above April. The share of CSPP has increased in2018.
- As of 1 June 2018, the Eurosytem had bought €157bn of Corporate bonds under the CSPP.
· Capital key deviation.
- In May, PSPP purchases were significantly above the capital key in Germany and below thecapital key in Italy.
- This unusual distortion could be explained by the strong redemptions recorded in April. “Thefirst PSPP redemptions occurred in March 2017 and principal payments on the securities purchased will be reinvested as they mature. Principal redemptions on securities purchased under the PSPP are reinvested by the Eurosystem in a flexible and timely manner in the month they fall due, on a best effort basis, or in the subsequent two months, if warranted by market liquidity conditions.”
June 06, 2018