Eurozone bailout bonds gone in just 15 minutes
Wednesday 26th January, 2011
The Eurozone on Wednesday issued the first bonds for its newly established bailout fund, hoping to raise 5 billion euros with the initial bond offer, but unprecedented demand meant everything had been sold within 15 minutes.
The Eurozone has now cast aside much of the lingering doubt over its ability to maintain stability in the currency and the demand for its bonds, said on Wednesday to be higher than any other bond issue in recent history.
Had the bailout fund wished, it could have sold 40 billion euros worth of bonds, but limited its initial supply and effected much greater control over the yield it would pay.
The rush for Eurozone bailout bonds, coming in the midst of the worst debt crisis in the history of the currency, reveals that investors have confidence in the ability of Europe to control its finances and bring its fiscal problems under control.
Wednesday 26th January, 2011
The Eurozone on Wednesday issued the first bonds for its newly established bailout fund, hoping to raise 5 billion euros with the initial bond offer, but unprecedented demand meant everything had been sold within 15 minutes.
The Eurozone has now cast aside much of the lingering doubt over its ability to maintain stability in the currency and the demand for its bonds, said on Wednesday to be higher than any other bond issue in recent history.
Had the bailout fund wished, it could have sold 40 billion euros worth of bonds, but limited its initial supply and effected much greater control over the yield it would pay.
The rush for Eurozone bailout bonds, coming in the midst of the worst debt crisis in the history of the currency, reveals that investors have confidence in the ability of Europe to control its finances and bring its fiscal problems under control.
