NTMA borrowing costs rise above 2.2pc
The cost of borrowing rose for the first time since the National Treasury Management Agency resumed bond auctions last year.
The NTMA sold €750m of 15-year debt at a yield of 2.2pc yesterday compared to a yield of just 1.6pc four months ago.
The rise in yields reflects trends elsewhere in Europe as the threat of eurozone deflation recedes.
A recent sell-off in European bonds has spread across the word, pushing benchmark yields in most countries to their highest point so far this year and marking an abrupt turnround in a long-running rally that pushed borrowing costs to record lows.
The NTMA has exploited the recent low prices, borrowing €11bn out of the €12bn to €15bn the State will need next year.
Yesterday's auction was also affected be oversupply in eurozone bonds. Spain and Italy have also sold bonds recently.
The NTMA's auction received slightly higher demand than the 2.65 bid-to-cover ratio across the three previous bond sales.