You'll Never Guess Who Bought Bonds At Last Week's Disappointing EFSF Auction

mc escher drawing handsMC Escher ‘Drawing Hands’

Photo: Wikipedia

Last week, the European Financial Stability Fund sold €3 billion ($4.1 billion) of bonds in what was widely considered to be a disappointing auction.However, according to The Sunday Telegraph, the auction can now but ruled as a complete failure.

According to reporters Harry Wilson and Kemal Ahmed, the EFSF had to step in to buy EFSF bonds due to tepid demand.

From their report:

Sources said the EFSF had spent more than € 100m buying up its own bonds to help it achieve its funding target after the banks leading the deal were only able to find about €2.7bn of outside demand for the debt.

The revelation will be seen as a major failure and a worrying sign of future buyers strike after EFSF officials and their bankers had spent recent weeks travelling the world attempting to persuade key investors, including China’s national wealth fund and Japanese government funds, to buy its bonds.

For more: Here’s A Look At All The Major Issues In Europe Right Now

NOW WATCH: Money & Markets videos

Want to read a more in-depth view on the trends influencing Australian business and the global economy? BI / Research is designed to help executives and industry leaders understand the major challenges and opportunities for industry, technology, strategy and the economy in the future. Sign up for free at