FRANKFURT, Oct 26 (Reuters) - Funds maturing in the European Central Bank’s bond purchase programme will be reinvested within two months and, for government bonds, in the same country the original security was purchased in, the ECB said on Thursday.
“Principal redemptions on securities purchased under the public sector purchase programme are reinvested by the Eurosystem in a flexible and timely manner in the month they fall due, on a best effort basis, or in the subsequent two months, if warranted by market liquidity conditions,” the ECB said.
“The published monthly net purchase volumes per jurisdiction may therefore fluctuate owing to the timing of these reinvestments,” the ECB added.
It added purchases of asset-backed, covered and corporate bonds will remain “sizeable”. (Reporting by Balazs Koranyi; Editing by Francesco Canepa)