Ireland sells ten-year bonds at yield of 2.9%

Thursday 13 March 2014 11.12
NTMA says auction for 10 year bond 2.9 times oversubscribed
NTMA says auction for 10 year bond 2.9 times oversubscribed

The National Treasury Management Agency made a successful return to regular bond auctions today.

It sold €1 billion of ten-year paper in its first such tender since their suspension three-and-a-half years ago ahead of an EU/IMF bailout.

After ten-year yields fell to a record low of 3.1% yesterday, compared with a 2011 peak above 15%, the NTMA sold today's bond at 2.967%. It had aimed to sell €1 billion.

The auction received 2.9 times more bids than needed for its completion, the debt agency said.

Ireland is already funded into next year and is aiming to raise €8 billion this year to complete pre-funding for 2015, nearly half of which it has already garnered from a ten-year issue in January.

Ireland has been raising debt periodically for over two years, successfully paving the way for the completion of its three-year rescue programme in December.

"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," commented NTMA's chief executive John Corrigan. 

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

"It's an absolutely massive deal," said Eamon Reilly, a bond trader at Davy Stockbrokers. 

"It bodes well for a decent performance for the rest of the year, we would have had a lot of bids in that didn't get accepted. An absolute stellar auction."