… but ECB covered bond buying scheme dead on arrival as supply slumps

The European Central Bank is estimated to have bought well over €1bn, and possibly close to €2bn, in the first week of its third covered bond purchase programme (CBPP3) and traders have reported a tripling of flows. But limited dealer inventories are finite and issuance prospects mean it can only be a matter of time before the programme peters out, writes Bill Thornhill.