Japan Backs EFSF Without Buying 20-Year Bonds, Official Says

Japan didn’t buy any of the 1.5 billion euros ($1.98 billion) of 20-year bonds sold for the first time by the European Financial Stability Facility this week, a Japanese Finance Ministry official said in Tokyo.

The government instead bought five-year bonds and six-month bills, according to the official, who spoke on condition of anonymity because of the ministry’s policy.

The 440 billion-euro EFSF is helping to finance a second rescue of Greece and smaller aid programs for Ireland and Portugal as part of efforts to stem a sovereign-debt crisis that has threatened the European single currency.

Japan purchased 320 million euros of five-year bonds and 90 million euros of six-month bills, the official said.

To contact the reporter on this story: Mayumi Otsuma in Tokyo at motsuma@bloomberg.net

To contact the editor responsible for this story: Paul Panckhurst at ppanckhurst@bloomberg.net

Press spacebar to pause and continue. Press esc to stop.

Bloomberg reserves the right to remove comments but is under no obligation to do so, or to explain individual moderation decisions.

Please enable JavaScript to view the comments powered by Disqus.