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ECB May Already Be Winding Down Its Corporate Bond Purchases

  • Weekly rate of CSPP buying falls 50% in April from 1Q
  • Reduction may signal a ‘stealth taper,’ Deutsche Bank Says
Updated on

The European Central Bank may have already started to taper its corporate-bond buying program, according to Deutsche Bank AG.

The rate of purchases under the Corporate Sector Purchase Programme fell 50 percent in April to about 700 million euros ($853 million) per week, down from 1.4 billion euros during the first quarter, Deutsche Bank said in a note published on Tuesday. That may mean the ECB is starting a “stealth taper” to wean the European bond market off the corporate debt purchases it began in June 2016 to prop up growth, Deutsche Bank said.