·Central Banks: massive extension of balance sheets
- The envelope for the pandemic emergency purchase programme (PEPP) increased by €600bn to a total of €1,350bn. The horizon for the purchases was extended to at least the end of June 2021 (from the end of this year previously).
- The Fed announced unlimited purchases of Treasuries and MBS. Powell said that the central bank’s holdings “can’t go to infinity.”
· Eurosystem’s purchases from March to May
- Under the PEPP and CSPP, the ECB bought on average per month:
- €100/110bn of sovereign debt
- €10/15bn of corporate debt
- €15bn of commercial paper
· APP reinvestment :
PSPP reinvestment will average €16.4bn/month over the next 12 months, up from €14.6bn in the past
- CSPP reinvestment will average €1.4bn/month over the next 12 months
· Stock of the Eurosystem’s asset purchase program
- As of 29 May 2020, the Eurosystem’s asset holdings reached €2,743bn. Breakdown by program:
- PSPP: €2,218bn (81% of total holdings)
- CSPP: €213bn (8%)
- CBPP3: €281bn (10%)
- ABSPP: €31bn (1%)
- The share of corporate debt purchases continues to increase since the program's resumption.
- Since November 2019 (Restart ECB QE), the proportion of PSPP purchases relative to the APP is 69% which is significantly lower than the proportion of 80% that the ECB bought until December 2018.