debut bond issue for the EU’s bailout fund yesterday was nine times oversubscribed in an unprecedented success for the bloc.
All €5bn (£4.29bn) of the five-year bond on offer was snapped up, with Asian investors fuelling demand.
The Japanese government alone bought more than 20 per cent of the issue, which is perceived as the safest of EU bonds and offered a higher yield that German Bunds.
The AAA bond’s yield was 2.89 per cent, compared with 2.31 per cent for Bunds. The EU closed the order book yesterday with demand at €44.5bn.