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Sold: NTMA sells €1 billion worth of Irish government debt

The yield of 2.967% is less than was previously expected.

Image: Stocks via Shutterstock

IRELAND TODAY SOLD €1 billion worth of ten-year debt, with a recording-breaking low yield.

The ten-year bonds had been expected to sell with an interest rate of 3.018%. However, that figure was surpassed today, as the National Treasury Management Agency (NTMA), sold the bonds for a total yield of 2.967%.

In total, there were bids of over €2.8 billion for the government debt, with the NTMA’s John Corrigan saying the sale represents a successful return to the markets for Ireland.

“The completion of today’s auction marks Ireland’s full return to the markets for the first time since September 2010 and brings to a successful conclusion the NTMA’s programme for a phased return to the markets carried out over the past two years.

“The €1 billion funding raised today, together with the €3.75 billion raised in the syndicated issue on January 7, amounts to almost 60 percent of our funding target of €8 billion for the full year.”

Previous high yield rates, which reached 15%, had precluded Ireland from borrowing from the markets, necessitating a Troika bailout. Seven per cent is seen as the upper amount a country should borrow at.

The restoration of Ireland’s credit rating by ratings agency Moody’s is seen as a major step on the road to recovery.

Read: Record breaker: Irish bond yields hit new floor

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