The National Treasury Management Agency's chief executive has said that investors are holding off on investment decisions on Ireland as they wait the outcome of the UK's vote on Brexit.
Financial markets have taken a decision to "hold fire", Conor O’Kelly told reporters at an event in Trinity College in Dublin today, Bloomberg reports.
"We don't have an auction in June deliberately," Mr O’Kelly said, adding it "no doubt will be extremely volatile" if the UK votes to leave the European Union.
"The best way to protect ourselves is not to be involved at this particular time," he added.
Mr O'Kelly said he is "optimistic" that Ireland's credit rating may be upgraded again, after Moody’s Investors Service earlier this month returned Ireland to an ‘A’ rating.
But he said he still does not understand how Ireland was able to sell a century bond at a yield as low as 2.35% in March.
"It's more a statement on the dysfunctional nature of interest rate markets than it is on Ireland’s credit," the NTMA CEO said. "It is an extraordinary environment," he added.
Ten-year Irish bonds yielded 0.77% today, narrowing the spread between benchmark bonds and German
securities of a similar maturity to 62 basis points, Bloomberg data shows.