Japan has bought 120 million euros ($152 million) of new six-month bills sold by the euro zone’s rescue fund, the European Financial Stability Facility (EFSF), in an auction on Tuesday, a finance ministry official said.
The amount accounts for 8 percent of a 1.5 billion euros of six month bills sold by the EFSF in the auction which drew total bids worth 4.66 billion euros.
The auction came a day after U.S. ratings agency Standard & Poor’s downgraded the EFSF by one notch to AA+ from AAA, following downgrades of the ratings of France and Austria by the same margin and rating cuts of seven other euro zone nations.
Read the rest of the story: Japan Buys $152 Million of Euro Rescue Fund T-Bills.
Japan’s government bought 10 percent of bonds sold by Europe’s rescue fund yesterday, a Finance Ministry official said, in a show of support for the region’s bailout efforts.
It purchased 300 million euros ($413 million) worth of debt in the European Financial Stability Facility’s 3 billion-euro bond sale, said the person, who spoke to reporters in Tokyo today on condition of anonymity.
The EFSF postponed the bond sale on Nov. 2 amid market turmoil prompted by Greek Prime Minister George Papandreou’s call for a referendum on the rescue pact for his country.
Read the rest of the story: Japan Says It Bought 10% of Europe Rescue Bonds Yesterday.
Treasury prices fell Tuesday, after Japan announced it will buy eurozone bonds to help prevent the spread of the region’s debt crisis.
The announcement reversed a three-day rise in bond prices. Treasury prices have been rising ever since reports on weekly unemployment claims and the December job market both came in weaker than expected last week.
Then, over the weekend, jitters about Europe’s debt crisis came back into the spotlight, as Portugal is under pressure to take a bailout. That uncertainty about the euro zone lent additional support to Treasury prices, sending yields — which move in the opposite direction — falling Monday.
Since U.S. Treasuries are viewed as a low risk asset in times of uncertainty, their prices often rise when economic news disappoints
Read the rest of the story: Treasuries fall after Japan pledges European bond buy – Jan. 11, 2011.