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Bailout fund EFSF attracts strong demand at auction

THE EU’s bailout fund, the European Financial Stability Facility, attracted strong demand at an auction today, The Bundestag said in a statement.

The German Central Bank, which was behind the auction, said it received bids of €5.2bn for €1.9bn of six-month bonds at an average interest rate of 0.2040pc.

While the auction was oversubscribed, the rate was slightly higher than last month which was 0.1908pc.

The EFSF borrows money from the markets at low rates and uses it to fund countries like Ireland, Greece and Portugal.