Monday 20 November 2017

Government planning return to bond markets over next 18 months

John Corrigan
John Corrigan

THE NATIONAL Treasury Management Agency is planning three or four more short term Treasury bill auctions before the end of the year it said today.

The move is part of a phased-in return to the bond markets to borrow money over the next 18 months.



Following a recent successful t-bill auction, the NTMA’s chief executive John Corrigan said: “For some time now the NTMA’s plan has been to be carefully and deliberately re-engage with the debt markets in a phased manner.



“That process is underway and will continue over the coming months as we increase the size and maturity of Treasury Bill issuance and introduce two new types of funding instruments specifically tailored to the needs of the domestic pensions industry.



“Market conditions permitting, the NTMA also plans to issue a conventional medium to long-term bond.”



The cost of borrowing on the open markets has come down from a high of 14pc around the time of the bailout.



Yields of 7pc or more are considered prohibitive.



In the past few months the cost of Irish borrowing has fallen below 7pc but that is still considerably higher than the interest rates we are currently paying for the €67.5bn EU/IMF/ECB bailout loans.

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