ECB QE Monitor - December 2019

The Eurosystem started its QE in March 2015. The 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) October 30 2019 (with the arrival of Christine Lagarde replacing Mario Draghi, decision announced to restart its QE: purchase €20bn of assets per month without end date)

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Key points for this month:

· Net APP purchases purchases in December slowed at €15.4bn after a sharp €24bn resumption of purchases in November

· PSPP

• The average maturity of bonds redeemed under the PSPP was relatively stable at around 8.2 and 6.3 respectively in Spain and Germany
• Monthly purchases: €12.5bn (€14.5bn in November)
• PSPP monthly share of QE increased to 81% versus 60 % in November 2019
• Net purchases concentrated mainly in France with €5.3bn
• As of 31 December 2019, the Eurosystem had bought €2,103bn of bonds under the PSPP

· CSPP

• Monthly purchase: €1.8bn (€5.9bn in November)
• CSPP monthly share of QE decreases at 12% in December. Since the relaunch of QE, the share of CSPP has increased particularly rising to 23%
• As of 31 December 2019, the Eurosystem had bought €185bn of Corporate bonds under the CSPP

· Reinvestment:

• PSPP Redemption in December €11bn (after €11bn in November)
• €202bn of PSPP redemptions until December 2020 (€16.8bn per month)
• €16bn of CSPP redemptions until December 2020 (€1.3bn per month)

Amundi Research
December, 2019