Investors flock to EU bail-out bonds despite downgrade

Eurozone's rescue fund on Tuesday (17 January) managed to sell €1.5 billion worth of short-term bonds at low borrowing costs, despite having lost its triple-A rating one day before.

The German national bank, who conducted the sale on behalf of the European Financial Stability Facility (EFSF), said the auction of six-month bonds drew bids three times their value, at an average yield of 0.2 percent. Last month, the Luxembourg-based fund met similar solid demand for €1.97 billion worth of ...