FRANKFURT, May 29 (Reuters) - Spanish banks reduced their exposure to government debt in April, while Italian banks kept stocking up on the paper, European Central Bank data showed on Wednesday.
The ECB data do not break down which countries’ debt banks hold, but with a recent easing of market pressure on the governments struggling most with high debt, foreign and local investors are returning to euro zone bond markets.
Spanish banks cut 10.3 billion euros from their government bond holdings, offsetting a 15.9 billion increase in March. Italian banks, on the contrary, kept adding to their sovereign debt holdings, recording a 7.4 billion increase after a 10.8 billion rise in March.
Reporting by Sakari Suoninen