Sunday 19 January 2020

NTMA will seek up to €1.5bn in bond market

Emmet Oliver Deputy Business Editor

The NTMA will re-enter the European bond market next week hoping to raise between €1bn and €1.5bn as stresses in the sovereign debt market ease.

The agency, the government's treasury arm, has decided postponing a bond auction at this time wouldn't be wise as it might send the wrong signal to fixed-income desks across Europe. The government's effective interest rate, priced off 10-year government bonds, was 4.59pc yesterday, down from almost 6pc the week before.

The €750bn stabilisation fund, set up by the EU and the IMF, is the chief reason for the lower bond yields.

The NTMA, which has collected 60pc of this year's funding requirement, is now hoping to take advantage of the lower yields and the more stable environment. Talk of Greece defaulting on its debts is now less common on the markets, although downward pressure continues on the euro against the dollar.

S&P yesterday defended their recent downgrading of various European countries, stating that while not always popular with governments, the agencies remain focused on serving investors.

Irish Independent

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