Business Irish

Saturday 22 October 2016

Government to auction €1bn of 2026 bond

Ailish O'Hora and Colm Kelpie

Published 08/02/2016 | 10:12

NTMA Chief Executive Conor O Kelly
NTMA Chief Executive Conor O Kelly

THE body that manages the country's debt will auction €1bn of bonds on Thursday February 11.

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The National Treasury Management Agency (NTMA) will issue €6bn to €10bn of long-term Government bonds over the course of 2016.

The NTMA said the auction will be of the 1pc Treasury Bond 2026 and will open from 8am for two hours. 

It will be confined to recognised primary dealers.

“A non-competitive auction for 15pc of the amount sold in the competitive auction will immediately follow and will close at 10:00am on Friday 12 February,” the NTMA said.

Ratings agency Fitch recently upgraded Ireland's credit rating to A from A-, saying the economy is growing at a "brisk pace".

The agency pointed out that the economy grew last year to the end of September by 7pc - the fastest among developed economies.

It said the economy will grow by around 4pc this year - up from the 2.4pc forecast in its previous assessment.

"Although investment growth remains volatile, the Irish economy is exhibiting much more solid fundamentals that will help sustain momentum in the short term," Fitch said.

"Stronger balance sheets, a continued strengthening of the labour market and rising household consumption should underpin robust domestic demand growth in 2016," the agency said.

However, Fitch said the election represented a risk and warned that polls showed that the result will be inconclusive.

It warned that a protracted period of instability and reliance on more "radical elements" to sustain the coalition risked weakening reforms.

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