Irish Bond Sale – National Treasury Management Agency on the ball.

PRIVATE INVESTORS bought Irish Government bonds yesterday for the
first time since September 2010. The National Treasury Management
Agency sold just over €3.5 billion worth of three-year debt.

The new bonds were offered to investors holding €11.8 billion of
outstanding bonds maturing in two years. The fact that about one-third
of those investors agreed to the “switch” to longer-dated bonds
“demonstrated investor appetite for Irish Government paper and will
support our plans for a phased re-entry to long-term debt markets”,
the NTMA said.

The rate of interest offered was just under 5.2 per cent, only
marginally higher than the bonds it repaid.

The government has to repay €11.8 billion in January 2014 and this is
a tranche of it.

Barry Nangle, head of bonds at stockbroking firm Davy, the only Irish
dealer of the Government’s bonds, said the “significant majority of
investors switching were the Irish domestic banks”.

Comment- The relevance of the major cash splurge in recent months by
the ECB lending exceedingly cheap money to European banks may be the
foundation of this. But it is undoubtedly a good thing for the