ECB buys covered bonds, deposits at ECB rise

FRANKFURT, July 14 (Reuters) - The European Central Bank and euro zone central banks have bought 96 million euros ($134 million) more in covered bonds, the ECB said on Tuesday, taking the total amount purchased to 162 million euros.

In its third disclosure of bonds bought under the 60 billion euro programme, the ECB did not offer details of the purchases but only gave the total amount spent. On Monday, the ECB said 66 million in bonds had been bought.

The amounts are published on Reuters information page ECB59 after the purchases settle, which takes 2-3 days.

The ECB and national central banks are buying euro-denominated covered bonds -- debt backed by a pool of assets such as mortgage loans that remain on the issuing bank's balance sheet -- directly from primary and secondary markets over the next year.

Overnight deposits at the ECB rose slightly, data also showed on Tuesday, with banks still holding on to much of a recent near-half trillion injection of 12-month liquidity.

Banks deposited 164.087 billion euros overnight at the ECB on July 13, up on the 155.533 billion euros deposited overnight on July 12 and the highest since July 6, but well short of the record 315.956 billion euros parked on July 5.

Banks also borrowed 4.656 billion from the ECB's overnight window, compared with 135 million euros previously. Outstanding liquidity in ECB operations -- including bonds -- now totals 786.443 billion euros ECB40.

The amounts on deposit at the ECB have soared since the Frankfurt-based central bank poured 442 billion euros of 12-month funds into money markets in late June.

The ECB kept its interest rates on hold this month, having narrowed the gap between its main policy rates to 75 basis points from 100 basis points on May 13. [ECB/INT]

The headline rate is at a record low of 1.0 percent. Banks currently receive 0.25 percent interest on overnight deposits and pay 1.75 percent to borrow overnight.

For details of previous ECB overnight lending operations please go to the ECB web site: here (Reporting by Frankfurt newsroom, editing by Mike Peacock)