Tuesday 24 October 2017

NTMA set for €750m 10-year bond sale

John Corrigan, Chief Executive of the National Treasury Management Agency (NTMA)
John Corrigan, Chief Executive of the National Treasury Management Agency (NTMA)
John Mulligan

John Mulligan

The National Treasury Management Agency (NTMA) will auction €750m of 10-year treasury bonds on Thursday.

The agency, which manages the national debt, confirmed yesterday that it will hold the bond auction this week. It is pricing the bonds with a coupon, or interest rate, of 3.4pc.

The NTMA raised €1bn in a bond auction last month. That issue was 2.8 times oversubscribed. The auction of the 3.4pc treasury bonds resulted in a yield of 2.917pc.

Following that auction, the NTMA has raised €5.75bn in the bond markets so far this year, which is more than 70pc of its €8bn funding target for the full year.

In March, the agency also raised €1bn in what was its first post-bailout bond auction of 2014. It raised €3.75bn in January, but that was via a syndication issue.

The March issue was 2.9 times over-subscribed.

NTMA boss John Corrigan said at the time that the auction marked Ireland's "full return to the markets" for the first time since September 2010 "and brings to a successful conclusion the NTMA's programme for a phased return to markets over the past two years".

Yesterday, Portugal's bonds rose, pushing five-year yields toward a record low after Prime Minister Pedro Passos Coelho said the nation's finances were strong enough to exit its bailout programme without a precautionary credit line. Ireland also exited its bailout without such a credit line.

Portugal will be the third country to leave a rescue program, following Ireland's exit in December and Spain's the following month.

Irish Independent

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