The ECB published the final numbers of the APP programme, thereby concluding the net asset purchase programme. The QE figures for December showed the PSPP rose as expected to a 90% share of total PSPP holdings.

With the conclusion of the APP, we also received the full redemption profile for 2019. PSPP redemptions will total EUR167bn under the PSPP. On Tuesday, we published our EUR FI: guide to Q1 issuance and thoughts on supply in 2019, where we highlighted our expectations for coming EGB net supply (net of QE). We expect EUR140bn (of the EUR167bn in PSPP) will be reinvested in EGBs.

In December, alongside ending its net purchases the ECB published its new guidance on reinvestments. ECB decided to reinvest at least until past the first rate hike and in any case for as long as necessary. Importantly, as a rule reinvestments will be in the jurisdiction where they fall due, but with a gradual adjustment to reduce the cumulative capital key deviations (with no time frame). The cumulated capital key deviations were marginally changed in December, as expected.

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With the conclusion of the net asset purchases, we will also discontinue the monthly update in this format and refer readers to the Government Bonds Weekly in particular

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