Saturday 21 October 2017

NTMA sells €500m of treasury bills but yield stuck at 0.7pc

Thomas Molloy

Thomas Molloy

THE National Treasury Management Agency sold €500m of three-month treasury bills at an interest rate of 0.7pc.

That means that borrowing costs for the State remained stable when the yield, or interest rate, is compared with the last similar auction. Some investors were disappointed with the high interest rate needed to borrow money for just three months. Davy Stockbrokers said before the sale that the yield might be lower today.

Today's sale was the third sale of Treasury bills since the NTMA starting issuing them again in July after an absence of almost two years from the bond markets.

Treasury bills are similar to bonds but the money must be re-paid in a few months rather than years. Greece and Portugal never stopped selling treasury bills during the crisis but the NTMA halted sales after the bailout.

NTMA boss John Corrigan said the sale shows that 'significant progress' has been made.

Also in Business