Business ETC uses cookies. By continuing to browse this site you are agreeing to our use of cookies. Click here to find out more »
Dublin: 18 °C Wednesday 19 June, 2013

Ireland’s cost of borrowing drops as another €500 million is raised

Today’s T-Bills auction was oversubscribed.

Image: Francisco Seco/AP/Press Association Images

THE AGENCY TASKED with managing Ireland’s debt has raised €500 million on the markets today – and seen the country’s cost of borrowing drop to its lowest post-bailout level.

The NTMA completed an auction of €500 million Treasury Bills. The three-month bonds sold at a yield, or interest rate, of 0.55 per cent.

Total bids received amounted to €2.06 billion, 4.12 times the amount on offer.

Today’s sale was the fifth time Ireland returned to the markets since the IMF/EU rescue package was granted in November 2010. When similar bills were last issued in September and October, the interest rate paid was 0.7 per cent.

This was a significant decrease on the yield of 1.8 per cent seen during an auction in July, the first since the international intervention.

Danske Markets strategist Owen Callen noted today’s auction was the best performance from the NTMA T-Bill programme to date and “represents another important step towards fully-normalised market funding” next year.

“With positive momentum and yesterday’s credit decision from Fitch, we may see some new investor names return to the Irish market in the near future,” he added.

A separate round of bond activity, where Ireland raised €4.19 billion in longer-term loans followed later that same month. NTMA is still testing the waters with these so-called T-Bills and it is unlikely the selling of debt with longer maturities will be tabled until 2013.

Read: Bank of Ireland becomes first bank to borrow without State support>

Related: Ireland to go back to the markets again>

  • Share on Facebook
  • Email this article
  •  

Read next:

Comments (18 Comments)

  • Strong show of confidence in Ireland over the last few days. Very reassuring and certainly a result of our Government’s taking the right path in dealing with the mess we’ve found ourselves in.

    Reply
    • @John you have stated you are emigrating dropping the Irish accent asap,and delighted you have so little of the Irish gene pool coursing through your veins.Why are you so high in your praise of the government if your willing to stay and help the rest of us in the recovery of our state?
      Perhaps maybe you are trolling on behave of one of the ruling political parties.

      Reply
    • His post above has a point. Despite all our moaning, the tough austerity which “isn’t working”, and the complete lack of a top-down approach (so far anyway) – we are not that bad and we are coming around. Looks like we may be exiting our bailout agreement, sampling the markets as a start and one of our banks which looks set to leave its own “bailout” programme. Credit where credit is due but lets not shy away from ensuring fairness to cuts and savings the government make.

      Reply
    • International employability, Norman.

      A lot of what you said doesn’t make any sense, by the way, I did my best to interpret it.

      Reply
    • Handbags at dawn.

      Reply
    • Kevin,

      Spot on. Also, with the upcoming bank debt deal, it appears that while FG won’t have been able to fulfill all their promises, they’ll have done the country a massive amount of good.

      December’s budget will be tough, but I think once we get through it things going forward will start to get better.

      Reply
    • @John are Labour not part of government aswell?told you already i’m working hard helping my country recover you’ve stated your emigrating as soon as possible so which is it are you staying or going.Make up your mind.

      Reply
    • The reason we are ”coming out of this” is down to the tax payers getting screwed left right and centre and keeping this countries farcical finances on life support. No magic pill, no tackling of the mortgage crisis, no taking on the croke park agreement, just sit and wait.

      So pleeeeeese save me from any praise from Kenny and the rest of the liars in office. They are a shambles.

      Reply
  • nice, next offer should be .45% if its 4 times oversubscribed.

    Reply
  • random 15/11/12 #

    Back on the merry-go-round. Wheeeee!!!

    Reply
  • what would be the normal rate of interest applicable for 500 million pre-bailout anyone?

    Reply
  • I guess this will be trumpeted by the government, even though these are the same markets that were referred to by Richard Bruton as ‘ the loan sharks of the markets’ during the fiscal treaty referemdum debate!

    Reply
    • Nigel
      This is good news and instead you whinge and cause others to have a miserable day. Many of the naysayers on this site remind me of the louse laden beggars that blocked the pavements of eighteenth century Dublin and moaned their way to alms which were only really given because the stench of stale drink and vomit and dirt was considered a health risk.
      However these were professional beggars and lived quite well for the day but contributed nothing to Society.
      Remarkably consistent with the moaners here eh?

      Reply
    • @Garry you were around in the 18th centuary?How old are you?

      Reply
    • @Gary
      Did I say it was bad news? Obviously you just like to have personal attacks on people rather than debate the issue at hand, much like our current government.
      I was merely pointing out the way Government will say ANYTHING to get the result they want! Back in the lead up to the Fiscal Treaty referendum, Richard Bruton said on live RTE that surely its better having access to the ESM rather than having to be at the behest of the LOAN SHARKS in the markets!!!! Thats what he said- so bacj then, getting money from the markets was bad but today its a good thing… Merely highlighting that we cannot listen to that type of hypocracy from our politicians any longer.
      Away from that, getting back into the markets is a small positive, yes.

      Reply
    • d 15/11/12 #

      Sounds like you are the one whinging Gary. You really need to learn some manners.

      Reply

Add New Comment