Cyprus bonds hold firm at €6.75 billion
The Eurosystem maintained its holdings of Cypriot bonds valued at 6.75 billion euros as of the end of November, data from the Central Bank of Cyprus have shown.
This stability is attributed to the European Central Bank’s ongoing efforts to deleverage its balance sheet as a strategy to curb inflation.
Breaking down the figures, the Public Sector Asset Purchase Program (PSPP) portfolio retained Cypriot bonds worth €4.29 billion, with no maturities reported for this period.
Notably, the ECB concluded reinvestments from bond maturities in August 2023, aligning with its budget contraction objectives and contributing to liquidity adjustments in the market, all in support of the broader anti-inflation initiative.
Examining the overall landscape, the Eurosystem’s bond purchase programs (APP) totaled €3.04 trillion by the end of November, reflecting a net decrease of €17.95 billion. Of this amount, €2.41 trillion was allocated to the PSPP.
Meanwhile, the Pandemic Emergency Purchase Program (PEPP) saw an increase in the value of Cypriot bonds to €2.45 billion by November’s close.
