Key points for this month:
Net APP purchases in March: €30.6bn
CSPP monthly share of QE hit a low in April.
- This slowdown is due to the fact that: (1) limited supply on the primary market and (2) favorable conditions to risky assets (spreads tightened)
- Draghi mentioned seasonality as the main source of rebalancing between Q1 and April.
- The point made on “no specific strategy” seems to confirm the commitment to keep purchase volumes under the private sector programmes “sizeable” in 2018
Capital key deviation.
- Germany recoded the highest capital key deviation to its disadvantage since the beginning of the PSPP
Redemptions coming in May:
- PSPP redemptions will be light in April (€6.2bn vs 23bn in April)
- Slight increase in CSPP redemptions (€0.5bn vs €0.1bn in April)
May 10, 2018