Japan bought 160 million euros ($212 million) of three-month bills sold by the euro zone rescue fund, the European Financial Stability Facility (EFSF), in an auction on Tuesday, the Ministry of Finance said.

That accounts for less than 5 percent of the 3.4427 billion euros of three month bills the EFSF sold in the auction, which had a bid-to-cover ratio of 2.0.

Japan has said it will continue to buy EFSF bonds by tapping liquid euro assets in its foreign reserves providing that Europe works to resolve the region's debt crisis.

Japan has bought about 3.9 billion euros of the total 28 billion euros of bonds sold by the Luxembourg-based EFSF.