Friday 18 August 2017

NTMA raises €500m at lowest cost since July

Finance Minister, Michael Noonan, and John Corrigan, Chief Executive, NTMA
Finance Minister, Michael Noonan, and John Corrigan, Chief Executive, NTMA

Donal O’Donovan

THE National Treasury Management Agency (NTMA) has raised €500m of short-term borrowings in the Government’s latest successful debt auction.

The Treasury Bills, which have a maturity of three months, were sold at a yield of 0.20pc – that’s less than half the interest rate charged the last time a similar deal was done back in November. It’s the lowest cost achieved since Ireland resumed T-bill sales in July, in another sign of rising investor confidence.

International investors offered to lend €1.8bn to the state at this morning’s auction, but most of the cash was left on the table because it is not required.

The NTMA is the agency that manages the country’s debt and it is already planning two more sales of the short term debt for February and March.

Last week the Government was able to borrow longer-term five-year bonds on the markets.

Also in Business