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ECB QE Monitor – November 12, 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)

 

Publication

 

Download the article in English

 

 

Key points for this month:

· Net APP purchases in October slowed down to €15bn compared with €29.7bn in September.

· PSPP

  • The average maturity of bonds redeemed under the PSPP has more than doubled in France, Spain and Germany.
  • Monthly purchases: €9.9bn (€23.2bn in September)
  • PSPP monthly share of QE decreases to 66% vs. 78% in September.
  • As of 2 November 2018, the Eurosystem had bought €2,128bn of bonds under the PSPP.

· CSPP

  • Monthly purchase: €3.5bn (€4.1bn in September)
  • CSPP monthly share of QE decreases at 23% in October. The share of CSPP has increased in 2018.
  • As of 2 November 2018, the Eurosystem had bought €174bn of Corporate bonds under the CSPP.

Capital key deviation: Spain’s capital key deviation collapses. On the contrary, that of Germany continues to increase.

· Reinvestment:

  • The ECB is considering buying more longer-dated bonds.
  • PSPP Redemption in September €21.12bn (after €6bn in September).
  • €162bn of PSPP redemptions until October 2019 (€13.6bn per month).
  • Limited reinvestment on the CSPP: €5.9bn of CSPP redemptions until October 2019 (€0.5bn per month).

 

Amundi Research
November 12, 2018

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ECB QE Monitor – November 12, 2018
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