Feb. 13 (Bloomberg) -- The European Central Bank said it bought fewer government bonds last week.
The Frankfurt-based ECB said it settled 59 million euros ($78 million) of bond purchases in the week through Feb. 10, down from 124 million euros the previous week. The ECB will take seven-day term deposits tomorrow to absorb the 219.5 billion euros of liquidity created since its Securities Markets Program started in May 2010, a practice it employs to ensure the purchases don’t fuel inflation.
Yields on government bonds have fallen since the ECB injected 489 billion euros in three-year funds into the banking system in December. Italian 10-year bonds advanced today for the fifth time in six days and Portuguese yields reached an 11-week low as Greece’s austerity package vote curbed the risk of contagion to the region’s most-indebted nations. Euro-area finance ministers plan to convene on Feb. 15 to decide on a second Greek aid package.
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