ECB QE count week ending 15 April 2016
- Total QE now 689.1bn vs 670.8bn prior
- Total covered bonds 169.3bn vs 166.8bn prior
- Total ABS 19.2bn unchanged
A reminder that it's the ECB meeting on Thursday. There's very few expectations for it.
Someone at the ECB is popping up with some comments too;
- More national central banks will have to use substitute purchases
This is coming from a bulletin from the ECB.
"Implementation aspects of the public sector purchase programme (PSPP)
Last updated: 18 April 2016
In its implementation of the public sector purchase programme (PSPP), the Eurosystem intends to conduct purchases in a gradual and broad-based manner, aiming to achieve market neutrality in order to avoid interfering with the market price formation mechanism.
In principle, purchases of nominal marketable debt instruments at a negative yield to maturity are permissible as long as the yield is above the deposit facility rate.
According to the configuration of the PSPP, substitute purchases are conducted if purchases of marketable debt instruments issued by the central government and agencies need to be complemented to implement the relevant NCB's share of purchases through the end of the APP. Given the extension of the APP until March 2017 and the increase in the monthly purchase pace to EUR 80 bn, some further NCBs are now expected to participate in substitute purchases.
If these substitute purchases comprise marketable debt instruments issued by international or supranational institutions located in the euro area, such purchases will be subsumed under the 10% allocation for these securities in the PSPP (from March 2015 until March 2016 this figure was 12%). The remaining purchases of marketable debt instruments issued by international or supranational institutions located in the euro area will be conducted on behalf of the Eurosystem by the Banco de España and the Banque de France."
Clear as mud.
