UPDATE: Italian and Spanish bond yields fall as ECB signals buy up

The European Central Bank said last night it would "actively implement" its controversial bond-buying programme to fight the eurozone's debt crisis, signalling it will buy Spanish and Italian government bonds.

Italian and Spanish government bonds opened higher, reducing the additional yield investors demand to hold the securities instead of benchmark German bunds, after the European Central Bank signalled it may buy the securities. The Governing Council of the European Central Bank (ECB) said it welcomed the announcements made by the governments of Italy and Spain on new measures and reforms in the areas of fiscal and structural policies, the Telegraph reports. "It is on the basis of the above assessments that the ECB will actively implement its Securities Markets Programme.....