UPDATE 1-Bank of Italy to buy 10 bln eur covered bonds-sources

(Adds details)

MILAN, July 3 (Reuters) - The Bank of Italy will buy about 10 billion euros of covered bonds as part of the European Central Bank's overall 60 billion euro ($84 billion) bond purchase programme, a monetary source said on Friday.

"The overall amount of 60 billion euros has been split up among 16 euro-zone countries on the basis of the single national central bank's stake in the capital (of the ECB)," the source told Reuters on condition of anonymity.

"On that basis the Bank of Italy has been assigned around 10 billion euros," the source said.

ECB President Jean-Claude Trichet said on Thursday the bank would begin its unorthodox programme of buying mortgage and public sector debt-backed bonds on July 6, targeting maturities of between three and 10 years.

National central banks will make 92 percent of the purchases in a programme designed to increase liquidity and encourage banks to lend to their clients.

"Each central bank will go to the market like any other investors, participating in offers when they are launched on the primary market or buying on the secondary market," the monetary source said.

"In this second case each central bank will make an offer for a significant amount and will have to target securities that have sufficient liquidity," the source said.

The Bank of Italy will move on various markets in the euro zone though the domestic market will be the focus, another monetary source said.

"It's true that at present it (the Italian market) offers few instruments of this kind but there are already quite a few banks planning significant operations in the coming months and in these cases purchases could be made when the issue is launched," a banking source said. (Reporting by Gabriella Bruschi, writing by Stephen Jewkes, editing by Mike Peacock) ($1=.7133 Euro)