QE figures for April showed that the average maturity of German Public Sector Purchase Programme (PSPP) purchases was unchanged in April at 4.7 years. We expect German purchases to continue to be biased towards the short end of the curve, but that the average maturity will increase slightly during 2017.
Purchases in Finland, Ireland and Portugal continue to deviate from the capital key (due to issuer limit), with purchases sliding a bit further in April, at EUR674m, EUR522m and EUR526m, respectively (versus 730m, 565m and 663m in March). Today's figures are set to be the run rate for the remainder of 2017.
QE purchases decreased as anticipated to EUR62.6bn in April versus EUR80.2bn in March. Monthly net purchases amounted to EUR54.3bn in the PSPP, EUR6.8bn in the CSPP and EUR1.9bn in the CBPP3, while the ABSPP decreased by EUR408m.
The reinvestment flow from redemptions is set to attract attention. Italy will be the only country getting an extra boost in May, which we estimate to be around EUR1bn in addition to the 9.7bn.
To read the entire report Please click on the pdf File Below