You Weren't Paying Attention, But Today's EFSF Bond Auction Was A Flop

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Photo: New York Post

The European Financial Stability Facility—the euro rescue fund—just auctioned off €3 billion ($4.1 billion) in bonds, and the sale went miserably.It had already postponed the sale last week due to poor market conditions after a Greek referendum proposal, but poor demand and higher-than-expected yields at today’s auction are not good signs.

According to RTE, demand for bonds only barely exceeded the $4.1 billion required to fund the next tranche of Irish aid promised as part of its bailout plan. Yields hit 3.59%, up from 3.38% in June at the last sale of EFSF bonds (via Bloomberg).

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