The EU's bail-out fund, the EFSF, attracted strong demand today at an auction of three-month debt, Germany's central bank said.
The Bundesbank, which organised the auction, said it had received €6.823 billion worth of bids for €3.443 billion worth of three-month bonds, at an average yield of 0.0516%. The auction was oversubscribed, the bank said.
In January, the Standard and Poor's ratings agency downgraded the EFSF by one notch to AA+ but said it would restore its top AAA ranking if the fund obtains additional guarantees.
The decision was the result of downgrades to France's and Austria's ratings from AAA since they served as top-level guarantors of the fund, S&P said at the time.
