The European Central Bank will need to commit more to its Italian and Spanish bond purchases than it did trying to cap the yields of Greece, Ireland and Portugal.

Last week's decision to end an 18-week fast and resume buying Irish and Portuguese debt wasn't unanimous, ECB President Jean-Claude Trichet said at a press conference that coincided with the resumption. Bundesbank President Jens Weidmann was among the dissenters, according to an official familiar with the discussions. The Aug. 7 statement heralding the extension of support to Italy and Spain was issued in Trichet's name.

Italy's 10-year borrowing cost declined by 81 basis points to 5.3 percent yesterday, the biggest one-day drop since the euro was introduced in 1999, after reaching a record 6.4 percent last week. Spain's 10-year yield has shed 110 basis points in the past week. Both yields have declined by an additional 20 basis points today. The European Financial Stability Facility must be "effectively and rapidly" overhauled to provide additional firepower, European Union financial services commissioner Michel Barnier said yesterday.