ECB targets purchase of €60bn per month in EGBs/SSA

ECB is targeting purchases of €60bn per month in EGBs/SSAs including the existing private sector purchase programmes (ABSPP, CBPP3).
 
In order to be eligible for purchase, EGBs and SSAs are required to have 2-30y of residual maturity and an investment grade rating restriction (with additional requirements for programme countries, ie, Greece and Cyprus). 

Nominal bonds (including negative yielding ones but not those below the -20bp deposit rate), as well as linkers, can be bought. 

Barclays notes in a repot on Monday:

• Aggregate purchases will be split among issuers according to ECB key capital. The ECB will also have an issue limit and an aggregate holding limit for the purchases, set as 25% and 33%, respectively.
• Our projection is that around €50bn per month of this amount should come from public sector issues (EGBs/SSAs), which we expect to be split €45bn into EGBs and €5bn into SSAs.