There are now many less bonds which meet the criteria, and according to Sandte the current supply will be exhausted by December.
“The UK’s vote to leave the EU can mean a lot for the ECB.
This could be by allowing a greater share of non-German bonds to be included, as currently the attribution is determined by the relative size of member states economies, or the ‘Capital Key’ as it is known.
Essentially this means that most of the bonds the ECB buys as part of its QE programme are German.
“Speaking last week, ECB Governing Council member Luis Maria Linde said the ECB will not provide its assessment of the impact of Brexit on the euro area until September “at the earliest”. The bottom line is that the ECB will not have at its disposal sufficient data to make any decisions at its Thursday meeting.