Thursday 21 September 2017

Government bonds at €113bn

bonds

THE value of outstanding government bonds stood at €113bn in October, with 15pc due to mature in less than three years, the latest data from the Central Bank shows.

At the end of September last year, resident holders held 46.6pc of long-term Irish government bonds.

Resident credit institutions and the Central Bank account for 91pc of resident holdings.

The resident non-bank financial sector reported holdings of €2.7bn as of last October, of which holdings by other financial intermediaries stood at €1.01bn.

The Central Bank said that within the next five years, 36pc of outstanding government bonds will mature.

Some 33pc of resident holdings fall under this maturity category, while the equivalent ratio for non-resident holdings is higher at 40pc.

About 34pc of long-term bonds held by non-resident investors will mature from 2023 onwards.

Analysts and Finance Minister Michael Noonan have said that government bonds held by the Central bank and linked to the now defunct Anglo Irish Bank will not impede Ireland's ability to fully participate in the European Central Bank's landmark bond-buying programme.

There had been some concern that bonds already held by Dame Street as a result of the scrapping of the notorious Anglo Irish Bank promissory note could hinder the State's ability to benefit fully from Frankfurt's quantitative easing programme.

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