Strong demand for EFSF bonds

“Markets eager for European bonds,” headlines Les Echos. On 25 January, the European Financial Stability Facility (EFSF) raised five billion euros, of which €3.3 billion will be immediately allocated to Ireland. “The demand for the bond issue was very strong, with more than 500 orders from all over the world, most notably from Asia,” reports the business daily, which describes the markets' response to the sale as “a vote of confidence.” The newspaper points out that “although eurosceptics would like to believe otherwise, the success of the operation is a testament to the efficiency of the EU’s response to the euro crisis. Community solidarity has paid off.” The bond issue may well “mark a turning point,” because “many investors believe that the EFSF bonds, which offer similar guarantees to German government Bunds but with a higher rate of interest, will pave the way for 'eurobonds'.”