ECB spends a record €22bn on buying up bonds

THE European Central Bank spent a record amount on government bonds last week as it began buying Italian and Spanish securities to contain the debt crisis.

The Frankfurt-based ECB said it settled purchases worth €22 billion in the week through August 12. That also surpasses the €16.5bn the ECB spent during the first week of its initial foray into Greek markets in May last year.

“The market optimists will interpret this number as good news as it underscores the ECB’s resolve,” said Christoph Rieger, of Commerzbank AG in Frankfurt. “Equally, the pessimists will point out that it is bad news as it shows how much money the ECB had to commit for the yield compression seen.”