First-ever 30-year bond raises €4bn for the State
The Government has borrowed €4bn in issuing its first ever 30-year bond.
The bond received €11bn worth of interest and will mature on February 18, 2045.
The yield - effectively the interest rate - was 2.088pc.
Cantor Fitzgerald Ireland's head of fixed income strategy Ryan McGrath said the €4bn figure was probably more than what was expected and was an excellent result for the National Treasury Management Agency (NTMA).
"They saw very very strong interest from this and they decided to issue a little more," Mr McGrath said.
"The bond traded positively in the secondary market following the pricing which investors like to see also."
Mr McGrath said the NTMA is taking advantage of record-low funding costs and is lengthening the average maturity of Ireland's debt, which is viewed as a positive for this country's debt situation.
Davy chief economist Conall MacCoille said Ireland will effectively be borrowing for free if European inflation goes back above 2pc, while Goodbody chief economist Dermot O'Leary told Bloomberg that the deal shows "just how far the Irish sovereign has come in a short space of time."
"Given the demand that is clearly there for long-term debt due to the search for yield, the NTMA should tap into this further over the coming months," Mr O'Leary added.
The NTMA is looking to raise €12bn-€15bn in long-term bonds this year. So far it has raised €4bn in seven-year debt, as well as the €4bn in 30-year debt raised yesterday.
Thirty-year bonds have surged in 2015 as meagre 10-year yields push investors to seek the higher yields of the longer-maturity debt, and the European Central Bank prepares to buy bonds as part of the €1.1 trillion quantitative easing programme.
(Additional reporting Bloomberg)