NTMA sell €1bn in 10-year bonds

The NTMA has today completed an auction of €1Billion of the benchmark 10-year Irish Government bond, the 3.40pc Treasury Bond 2024 at a yield of 2.917pc.

With the completion of today’s auction the NTMA has raised €5.75 billion in the bond markets so far this year which is more than 70pc of its funding target of €8 billion for the full year.

As already announced to the markets, the NTMA plans to continue its funding programme with another bond auction on 8th May.

Demand for Irish bonds has strengthened since ratings agency Moody’s upgraded the country’s debt to investment grade from junk in January. Analysts had expected the April and May sales to be slightly smaller in scale, with Ryan McGrath of Cantor Fitzgerald predicting fundraising of between €500m and €750m.

“We would expect that the next issue size will be less than last month’s E1bn tap” he said last week. “Balancing market visibility with limited funding needs is a consistent challenge for the NTMA.”