The National Treasury Management Agency has raised €5.5 billion through the syndicated sale of a new 10-year benchmark Treasury Bond maturing in October 2031.

The funds were raised at a negative yield, 0.257%, below average prevailing rates for ten year Irish debt. 

This implies that the debt has been raised at a negative rate, which makes the burden of Ireland's growing national debt more affordable. 

There was strong demand from a diversified investor base for today's transaction.

The total order book was in excess of €40 billion and included over 240 individual accounts.

This is the first state bond auction of the year. 

Frank O'Connor, NTMA Director of Funding and Debt Management, said:

"This is an encouraging start to our 2021 issuance programme and demonstrates the continued strong demand from a broad investor base for Irish sovereign debt.

"Today’s transaction brings us to over 30% of the mid-point of our target funding range of €16 - €20 billion for the year.

"Coupled with the significant cash balances we brought into 2021 and the absence of any bond maturities this year, our funding position is strong," said Mr O'Connor.

The NTMA has previously indicated it intends to borrow between €16 and €20 billion this year on behalf of the Exchequer.  

Last year it raised €24 billion at an average yield of 0.02%.