The European Central Bank has said it bought €711m worth of euro zone government bonds last week, ending a three-week pause in the controversial programme and backing up reports from traders last week that it had been buying Portuguese debt. The new purchases increase the programme's total spending to €77 billion.
Bond market traders have reported that the ECB has been intermittently buying Portuguese debt over the last week and a half. Since the ECB's purchases take 2-3 days to be finalised, it is likely that the settled amount includes purchases made over a week ago, but not the most recent ones.
The ECB's bond purchases are part of efforts to stave off Europe's debt crisis and get markets back into order. It can buy government and corporate bonds from banks and other investors - rather than direct from governments - under the programme, but it has given no further details, such as how much it could spend or how long it intends to buy for.
Most economists believe the ECB is focusing its purchases almost exclusively on the euro zone's debt trouble spots. Recent trends also suggest it concentrates its buying around periods of key periphery country debt auctions.
It remains a source of controversy, with opponents saying it treads dangerously close to the ultimate ECB taboo of financing governments.
The programme's fiercest critic, Axel Weber, who last year called for it to be scrapped, quit his job as head of the German Bundesbank earlier this month, at the same time ruling himself out of the race to become the next ECB president.
Speculation is also growing that the ECB could shelve the programme if Europe's rescue fund, the European Financial Stability Fund (EFSF), is also given the power to buy bonds. The idea has been debated by policymakers and has been championed by the ECB but Europe's dominant economy Germany remains opposed to the plans.
The ECB also said today that €40m in bonds it holds had matured last week, the second time this has happened, having last month revealed a first batch worth €87m had expired.
