BERLIN (MNI) – The German government is “very relaxed” about the
downgrade of the European Financial Stability Facility (EFSF) rescue
fund, Economics Minister Philipp Roesler said Tuesday.
The success of today’s auction of six-month bills by the EFSF shows
that the markets have confidence in the structure of the rescue fund,
the minister argued.
Standard and Poor’s on Monday lowered the long-term rating of the
EFSF to AA+ from AAA.
EFSF CEO Klaus Regling said on Monday that the downgrade would
not reduce the fund’s lending capacity of E440 billion. The EFSF “has
sufficient means to fulfill its commitments under current and potential
future adjustment programmes” until the permanent European Stability
Mechanism (ESM) rescue fund becomes operational in July 2012, he said.
The EFSF on Tuesday sold E1.501 billion in six-month bills,
matching its target with a bid-cover ratio of 3.1. The highest accepted
yield came to 0.27%, while the weighted average yield came to 0.2664%.
All of the bids at 0.27% were accepted. The average accepted weighted
price at the auction was 99.8655.
–Berlin bureau: +49-30-22 62 05 80; email: twidder@marketnews.com
[TOPICS: M$X$$$,M$G$$$,MFX$$$,MGX$$$,M$$CR$,MT$$$$]
