Europe coping with downgrades - UPI.com PARIS, Jan. 16 (UPI) -- Yields on benchmark Italian bonds dipped lower Monday as the European Central Bank purchased more debt to assist debt-burdened countries. Yields dropped to 6.63 percent, The Daily Telegraph reported. News agencies reported the ECB increased bond purchases to $4.78 billion last week from $1.39 billion in the previous week. Credit rating service Standard & Poor's Inc. rattled markets on Friday with a downgrade of nine European countries, including France, which lost its pristine AAA rating, and Italy, which was was lowered by two notches. There was political whiplash Monday. Italian Prime Minister Mario Monti said the European Union was to blame, not the Italian government. German Finance Minister Wolfgang Schauble said Germany would not increase its contribution to the European Financial Stability Fund, set up to help struggling nations. In France, demand was strong for a bond auction Monday, which provided some encouragement for investors. Moody's Credit Rating Service, meanwhile, said it would continue to review French finances with a potential downgrade in March, The Guardian reported. Monday's auction of $10.7 billion in short-term notes was a sellout. Although not as convincing as an auction of benchmark, 10-year bonds, analyst said the auction proved S&P's downgrade was not devastating. "It is doubtful though that the downgrading of sovereign debt for France, Austria, Italy, Spain, Portugal, Malta, Cyprus, Slovakia and Slovenia will have more than a passing influence on bond yields and stress in bank funding markets," said Mike Lenhoff, chief strategist at Brewin Dolphin. In Greece, Prime Minister Lucas Papademos said discussions on a voluntary reduction of the value of Greece's debt had been halted close to an agreement, to give investors time for reflection. Talks were not in jeopardy of being derailed, he said.