“The European Central Bank (ECB) injected 17 billion euros into the Italian, Spanish and Greek debt markets between June and July, while allowing its portfolio of German, Dutch and French debt to fall by slightly more, going by calculations by Financial Times based on ECB data,” Report informs, citing The Business Times.
The ECB concluded net purchases under its pandemic-era bond-buying program in March and is now focusing reinvestments of maturing bonds on the bloc’s weaker members.
The move highlights how the ECB is seeking to cap borrowing costs for countries such as Italy and to prevent yields surging as it pulls back from the accommodative stance that supported the region for years, the FT reported.