€500m worth government bonds sold
The government has sold another batch of three month treasury bills, the second last sale before the country leaves its bailout programme.
The €500m worth of three month government bonds were sold at an annualised interest rate (yield) of 0.20pc. The same amount was sold in June, for the same yield.
But demand today exceeded the June sale. Bids totalled €1.818bn, more than 3.6 times amount on offer, compared to €1.46bn or 2.8 times the amount on offer last month.
The auction is the National Treasury Management Agency’s seventh this year. There will be one more in September before the country’s planned exit from the bailout programme.
Auctions of the short-term bonds have become an almost monthly fixture on the financial calendar since the "bills" programme was reactivated last summer for the first time since 2010. August will be the first month this year in which no such auction is held.
The NTMA has a total funding target of €10bn for 2013.