ECB says bought 23 mln euros worth covered bonds

FRANKFURT, July 10 (Reuters) - The European Central Bank and euro-zone central banks kicked off their purchase program by buying 23 million euros ($32 million) worth of covered bonds, the ECB said on Friday.

In its first disclosure of bonds bought under the 60 billion euro program, the ECB did not offer details of the purchases but only gave the total amount spent.

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

The ECB and national central banks will buy 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.

Banks' overnight deposits at the European Central Bank fell, data also showed on Friday.

Banks deposited 125.239 billion euros overnight at the ECB on July 9, down on the 133.433 billion euros deposited overnight on July 8, but well short of the the record 315.956 billion euros parked on July 5.

Banks also borrowed 91 million from the ECB's overnight window, compared with 103 million euros previously. Outstanding liquidity in ECB operations now total 786.304 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.

Last week ECB President Jean-Claude Trichet's urged banks to pass on the benefits of the extra liquidity, and the central bank will be closely watching developments this week.

The ECB kept its interest rates on hold last week, 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 Victoria Main)