The QE figures for July showed an increase in the PSPP purchase relative to the private sector programmes (CBPP3, ABPP, CSPP). Hence, almost 85% of the monthly QE of EUR30bn was spent on the public sector rather than the private sector. The increase in driven by major countries such as Germany. The PSPP purchase has increased from EUR20bn in January 2018 to EUR25bn in July 2018. The main beneficiary of this increase in the PSPP purchase has been Germany, where the ECB is buying above the capital key.
This is different for Spain and Italy, where part of the redemptions is related to the SMP programme. This is very visible in the redemptions from the last week's financial statement from the ECB. Here there were redemptions of EUR7.3bn from the SMP programme and redemptions of EUR5bn in the PSPP programme. The bulk of the redemptions in the SMP programme came from Italy, while redemptions in Spain are related to the PSPP. Hence, there is little support for Italy, as the redemptions from the SMP programme are not reinvested.
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