Eurozone countries court Asian buyers for new debt issuance

Asian countries such as China and Japan have publicly shown their support for the Eurozone by taking large allocations of recent deals by the EU and EFSF. This has prompted some observers to speculate that yield-hungry Asian investors could also give their backing to peripheral Europe – but that may be wishful thinking

Sizable allocations to official institutions in China and Japan on the January bond transactions by the European Union and European Financial Stability Facility added fuel to the idea that Asian investors could have a major influence on the ultimate fate of the Eurozone. Even before those deals were completed, respected market participants had put forward the view that Asian buyers would be a natural source of interest for European debt, and not just that issued by the region’s core.

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