ECB supports peripheral eurozone bonds from post-Brexit rout

London

THE European Central Bank (ECB) came out in force to buy peripheral eurozone government bonds on Friday, providing crucial support after the UK voted to exit the European Union in a referendum on Thursday.

Bonds from Italy, Spain and Portugal plummeted on Friday's open in the hours after the referendum result but had partially recovered by the end of the day. This was largely due to the ECB's efforts, according to two syndicate bankers who cover sovereign, supranational and agency debt.