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ECB QE Monitor - February 2020

 

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)

 

Publication

Download the article in English

 

 

Key points for this month:

· ECB net asset purchases reached nearly €23.5bn in February 2020, very close to the target of €20bn per month.

· PSPP

  • The average maturity of bonds redeemed under the PSPP was relatively stable around 8.1 and 6.4 respectively in Spain and Germany.
  • Monthly purchases: €12.3bn (€12.5bn in December)
  • PSPP monthly share of QE slowed to 60% versus 81 % in December 2019.
  • As of 31 January 2020, the Eurosystem had bought €2,115bn of bonds under the PSPP.
  • In February 2020, PSPP net purchases reached €14.1bn. PSPP share of QE is stable at 81%

· CSPP

  • Monthly purchase: €4.6bn (€1.8bn in December 2019)
  • CSPP monthly share of QE increases at 23% in January 2020 (same level in November 2019 when QE restarted). Since the relaunch of QE, the share of CSPP has increased particulary rising to 23%.
  • As of 31 January 2020, the Eurosystem had bought €189bn of Corporate bonds under the CSPP. 
  • In February 2020, CSPP net purchases reached €5.7bn. CSPP monthly share of QE was stable this month versus January 2020 (23%).

· Reinvestment:

  • PSPP Redemption in January 2020:  €24.8bn (after €11bn in December 2019).
  • €192bn of PSPP redemptions until January 2021 (€16bn per month).
  • €16bn of CSPP redemptions until January 2021 (€1.3bn per month).
  • PSPP reinvestment will average €16.5bn/month over the next 12 months, up from €13.9bn in the past 12 months
  • CSPP reinvestment will average €1.4bn/month over the next 12 months

 

 

Amundi Research
February, 2020

Amundi Research & Investment Insights Unit
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ECB QE Monitor - February 2020
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