On the second day of a major purchase of covered bonds through a program aimed at boosting the economy, the European Central Bank turned to Italian paper, according to published reports on Tuesday.
The ECB purchase of Italian bonds included debt issued by leading bank Intesa Sanpaolo SpA, according to a report by Bloomberg, citing two sources familiar with the matter. The bond purchase plan began Monday when the ECB bought up covered bonds from France and Spain as part of its program of unconventional measures designed to stimulate growth in the lacklustre European economy.
The central bank has said it hopes that by purchasing covered bonds along with its targeted lending program, it can encourage retail banks to increase their lending to the consumer and business sector.
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