Key points for this month:
- Very interestingly, for the second month in a row, the share of German securities purchased under the PSPP has been below Germany’s capital key weight. The share of the Spanish and Dutch securities fell while the share of French and Italian securities kept increasing. The deviation from the capital key rule continues to intensify, slowly but surely.
- The share of Portuguese securities purchased under the PSPP remains strikingly stable, far below Portugal’s capital key weight.
- In May, the average maturity of German purchases reached a new low, at 3.98 years only. The Bundesbank continued to purchase securities with very negative yields, very likely below the negative deposit rate. On the contrary, the average maturity of French purchases hit 10.7 years in May, a new high.
- In May, 19% of CSPP purchases have been done on the primary market, the highest level since the launch of this programme.
- The total amount of assets purchased by the Eurosystem (expanded APP and previous programmes, including SMP) reached €2 trn for the first time. The Eurosystem’s balance sheet now accounts for 38% of the Eurozone’s GDP.