Investors paying to lend to Ireland as State auctions five-year bonds at negative interest rate for the first time
Ireland raised €750m on the bond markets this morning, selling five-year bonds at a negative interest rate for the first time.
Negative interest rates mean the State is being paid by lenders to borrow money – Ireland will have to pay back less than it borrowed.
The negative yield is a reflection of the large bond-buying programme being undertaken by the ECB in order to stimulate the European economy.
Ireland raised €500m via five-year bonds maturing in 2022 at an interest rate of minus 0.009pc.
It raised €250m via bonds maturing in 2045 at an interest rate of 2pc.
The NTMA has raised €9.5bn from bonds this year, and has already met the lower range of its target of raising €9bn-€13bn this year.