He European Central Bank (ECB) has acquired during the month of June 5,426 million euros in Spanish bonds within the framework of its PSPP purchasing program, questioned by the German Constitutional Court, a figure that represents an increase of 6.8% regarding the net purchases made in May by the institution.
The figure acquired in June has meant 21.5% of the total of 25,230 million euros allocated in the month by the institution to the acquisition of sovereign debt of the euro zone countries participating in the program, thus ranking above the capital key of 11.9% corresponding to Spain.
Thus, since the launch of the program in 2015, the ECB has acquired Spanish debt for the net amount of 281,396 million euros, after having bought 22,394 million euros in sovereign bonds in Spain since the reactivation of the PSPP program.
Country most favored by purchases: France
However, the most favored country in June for ECB purchases under this program was France, with a net monthly amount of 11,781 million euros, 46.7% of the total, when the country’s capital key is 20.4%, which is more than double the 5,459 million acquired in May as part of the PSPP.
In the case of Italy, the ECB has bought in June 2,327 million euros, compared to 2,853 million in May, which was equivalent to 9.2% of all sovereign bonds acquired, below the Italian capital key of 17%. For their part, the ECB’s net purchases of German debt totaled 338 million euros, compared to 6,621 million in May, 1.3% of its net purchases, when the weight of the Bundesbank is 27%.
Altogether, adding the 4,549 million destined to buy debt of supranational institutions, in the month of June the net purchases of the ECB have totaled 29,779 million euros, raising to 2.24 trillion euros the amount of the amortized portfolio values acquired through the PSPP program since March 2015.
On its side, the ECB has acquired on June 7.515 million euros in corporate bonds, up to 219,719 million euros, while the acquisition of bonds totaled 1,731 million, up to 282,766 million, and that of securitizations has fallen 231 million, up to 30,634 million.
Slowdown of emergency purchases
On the other hand, the ECB has indicated that last week it allocated 20,151 million euros to the acquisition of assets under its pandemic emergency purchasing program (PEPP), which has already reached a volume of 365,671 million since its launch at the end of last March, which represents the lowest amount of weekly purchases since mid-April. The previous week, the ECB allocated a total of € 30,012 million to the purchase of assets under the PEPP program.
On June 4, the Governing Council of the ECB decided increase the endowment of your PEPP program at 600,000 million euros, thus bringing its total capacity to 1.35 trillion euros. The issuing institute also decided to adjust the program’s completion horizon, extending the term to make net purchases by six months, until June 2021. Likewise, the funds obtained from the maturities will continue to be reinvested until at least the end of 2022 .
Outside the PEPP program, during the past week the ECB has acquired 4,413 million under the PSPP program and another 288 through the business debt purchase program, while it invested 148 million in the net purchase of securitizations and 874 in the purchase of bonds,
Thus, last week the central bank it has been made with assets for a net amount of 25,874 million, 34.4% less that the 39,471 million of the amount of the net purchases of the previous week.