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(Luxembourg) - The European Financial Stability Facility (EFSF) raised €5.5 billion towards its €19.5 billion funding needs in 2022 with the sale of a new bond maturity and one tap issue on Monday.  

The transaction was the first dual tranche issue since January 2022.

As the war in Ukraine continues, gas flows from Russia have been partially reduced or even fully stopped in some European countries. The temporary closure of the Nord Stream 1 pipeline from Russia to Germany in early-July for maintenance exacerbated the risk of longer-term delivery impairment for the euro area. Two of the largest euro area economies, Germany, and Italy, remain the most vulnerable.

Title: Expectations and term premia in EFSF bond yields

This paper offers the first study of the term structure of EFSF bond yields and a decomposition into expected interest rates and term premia.