The National Treasury Management Agency today received strong demand for €500m of three-month treasury bills sold at the same low interest rate - or yield - as a month ago.
The NTMA has taken advantage of a fall in its borrowing costs by launching two bond swaps, its maiden amortising bond issue and new long-term debt sales in a bid to get back into the bond markets.
Auctioning Treasury Bills in consecutive months for the first time since exiting markets in September 2010, the NTMA saw the average yield remain the same as last month at 0.7%.
This was much lower than the 1.8% paid in July's first post-bailout auction.
The rate also compared to the 0.765% paid by Italy, which unlike Ireland has not had to seek an international rescue, to sell €3 billion of three-month bills last week.
The National Treasury Management Agency, which will seek to keep the monthly short-term auctions going for the rest of the year, said the issue was 3.6 times subscribed, compared to September's 3 bid-to-cover ratio.
Eamonn Reilly, a bond trader at Davy Stockbrokers, said the overall result was ''satisfactory''. ''Ireland is continuing its good work,'' he added. Davy Stockbrokers is a primary dealer in Irish debt.
Owen Callan, from Danske Markets, said today's auction brings to €14.34 billion total issuance from the NTMA this year. He said it provides the agency with an ''enormous cash buffer'' of about €25 billion, when put together with its commercial paper programme.
The dealer said this effectively prefunds most of the January 2014 bond redemption, which had previously been considered a huge hurdle for Ireland to overcome.
He noted that most of the buying at today's auction came from international, mainly continental European investors. ''This will certainly be seen as a welcome boost in the context of Ireland's position at the EU summit today, and will further highlight our progress particularly when compared with periphery member states,'' he added.
Danske Markets also suggested that the NTMA should consider selling longer maturities of T-Bills, with a six and nine month issuance before the end of the year'' highly plausible''.
Spain raises €4.6 billion in successful debt sale
Spain today raised €4.6 billion at a sharply lower cost amid growing expectations that the cash-strapped country will soon make a request for international help to deal with its finances.
The Treasury sold €1.51 billion in 10-year bonds today at an average interest rate of 5.46%, down from 5.66% in the last auction on September 20.
It also sold €1.46 billion in five-year bonds at 3.98%, down from 4.6%, and €1.64 billion worth of three-year bonds at 3.23%, which was below last time's 3.68%. Demand was more than twice the amount offered.
Spain said it will soon decide whether to look to tap a European Central Bank bond-buying programme largely designed to keep a lid on its borrowing costs.