BRUSSELS – Eurozone finance ministers are to hold consultations with creditors throughout the month of November because the “extremely complicated” legal details of last month’s euro rescue plan are proving hard to implement.
On Monday, however, the Luxembourg-based EFSF [the bailout fund] had to offer over-the-odds interest to get its delayed €3bn 10-year Irish bond away and even then investors stayed away in their droves. The bond, which should have been priced close to German bunds, had to offer 177 basis points over German debt.
One senior banker told Reuters: “The levels at which this is trading shows you that there is little confidence in the name and what it is exactly … there just isn’t much demand for the name and until you have demand for the name, you are simply not going to see any secondary [market] performance.” He added that “love for the name has evaporated.”
I can’t think why.