ECB bond purchases slow down
(1 February 2012 – Europe) The European Central Bank (ECB) published data on Monday revealing the bank’s purchases of the bonds of eurozone nations diminished sharply last week as sovereign bond markets started to stabilise.
The ECB bought just €63 million (A$83 million) of bonds from eurozone countries on the secondary market, compared €2.243 billion the week before.
The bank has now bought a total €219 billion in eurozone government bonds since it first began the controversial operations in 2010 as part of efforts to ease debt strains in the 17-nation bloc.
It resumed major purchases in August when renewed strains pushed Italian and Spanish borrowing rates to unsustainable levels but purchases have dropped sharply in the past two weeks.
Several European governments have put pressure on the ECB to step up its programme of buying bonds, seen by some as a possible solution to the debt crisis.
But ECB President Mario Draghi has stuck steadfastly insisted that the programme is only temporary.
The bank has now bought a total €219 billion in eurozone government bonds since it first began the controversial operations in 2010 as part of efforts to ease debt strains in the 17-nation bloc.
It resumed major purchases in August when renewed strains pushed Italian and Spanish borrowing rates to unsustainable levels but purchases have dropped sharply in the past two weeks.
Several European governments have put pressure on the ECB to step up its programme of buying bonds, seen by some as a possible solution to the debt crisis.
But ECB President Mario Draghi has stuck steadfastly insisted that the programme is only temporary.
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