The central bank bought short-dated notes, said the people, who asked not to be identified because the information is private. The securities were acquired from Societe Generale and BNP Paribas, two of the people said.
Policy makers are seeking to use the region’s $3.3 trillion covered bond market as part of their efforts to stimulate the region’s economy. The 250-year-old debt market helps fund Europe’s mortgage industry and the notes have historically been attractive to investors because they’re guaranteed by the issuer and backed by a pool of assets.
“From today we will begin to know how aggressive the ECB will be in bidding for bonds,” said Agustin Martin, head of European credit research at Banco Bilbao Vizcaya Argentaria SA in London.
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