Sunday 21 January 2018

NTMA aiming to sell €500m in bills

THE National Treasury Management Agency will hold an auction of €500m of short-term government debt, known as treasury bills, tomorrow.

The deal is expected to run smoothly but as the first test of investor confidence since the markets have weakened over the past month, the price that the Government pays to borrow will be closely watched.

HONOHAN'S ADVICE FOR SMALL NATIONS

Central Bank governor Patrick Honohan said "it's safer if domestic and international banks are not too closely intertwined" in smaller economies.

In such countries, international loans taken by local banks can "pump up" the real estate market, Mr Honohan said, speaking at a panel discussion in Jerusalem.

SCALE OF ASSETS STILL SHRINKING

THE scale of assets held by Irish resident financial vehicle corporations continued to shrink in the first three months of the year, once NAMA linked deals are excluded.

The collective balance sheet of financial vehicle corporations increased by €8.3bn to €450.2bn over the period, due to aggregated transactions of €9.2bn and some revaluation of assets held.

€52BN IN LOANS TO IRISH HOUSEHOLDS

NEW statistics show that Irish financial institutions had €52.3bn worth of loans to households on issue at the end of March, down from €60.2bn in the same period a year before.

Loans to other European financial institutions were up from €38.6bn to €34.4bn. Capital and reserves also grew slightly to €300m. Irish financial vehicles have somewhat scaled down their books in the year, with total assets and liabilities of €450bn in March compared with €481bn in March 2012.

US INFLATION MAY BE STABILISING

US inflation showed signs of stabilising last month after a long decline, a potential comfort to Federal Reserve policymakers who want to avoid any chance of a debilitating bout of deflation.

The Labour Department said yesterday the consumer price index edged 0.1pc higher last month after two straight months of declines, while the so-called core index, which excludes food and energy costs, rose 0.2pc, just above the pace clocked in April. The core index is monitored by the US central bank closely because it is less volatile than the CPI.

Irish Independent

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