Italy, Spain buy more government debt in May: ECB

FRANKFURT
Banks in Italy and Spain were large net buyers of government debt again in May, after reducing their purchases the previous month, according to figures published Thursday by the European Central Bank
The ECB said Italian banks were net buyers of 19.56 billion euros ($25.52 billion) in government bonds in May, after only buying net EUR7.39 billion in April. Spain's banks bought a net EUR20.69 billion, after selling a net EUR10.28 billion in April
A rally in riskier euro-zone sovereign debt that started last August after ECB President Mario Draghi pledged to do "whatever it takes" to preserve the euro-zone has partly reversed course in recent weeks on the heels of comments from U.S. Federal Reserve Chairman Ben Bernanke that the central bank may begin to taper its monetary easing
The ECB doesn't break down the bond purchases by issuer
The ECB also noted in its national breakdown of monthly monetary data that private deposits strengthened at banks in Greece, Slovenia and Italy, a welcome sign for the euro-zone periphery
Spain and especially Cyprus continued to lose deposits, albeit at a slower pace
Private deposits at Spanish banks fell 0.4% on month in May, after falling 1.4% the previous month Cypriot banks registered a 1.9% loss of private deposits, after a 7.3% drop in April, which was likely a consequence of the recently agreed bailout between Cyprus and international creditors, which saw deposit holders take a hit