NTMA announces bond auction in May

The National Treasury Management Agency (NTMA), 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 details of the auction are as follows:

  • Bond to be auctioned:  3.40% Treasury Bond 2024
  • Auction size:  €750 million
  • Auction opens:  8:00 am
  • Auction closes:  10:00 am
  • Settlement Date: 13 May 2014

The auction will be conducted on the Bloomberg Auction System and will be confined to recognised primary dealers.

A non-competitive auction for 15 per cent of the amount sold in the competitive auction will immediately follow and will close at 10:00 am on Friday 9 May.

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.