The European Central Bank said it lowered its purchases of Spanish and Italian bonds as markets stabilized in the two countries such that there is no need for strong intervention from the bank. On May 10, central banks of Germany, Spain, and Italy intervened to halt the debt woes spreading across European nations and it seems that the plan is working and these countries just need time to overcome the problem. An Executive Board Member at the ECB mentioned the previous day that the coming week the ECB will mention details of how it intends to sterilize purchases.

The debt contagion spread from Greece to Spain, Italy, Portugal, and Ireland which made Spain and Portugal announce this week new austerity measures to contain the debt crisis.