The State has borrowed €1bn for 10 years at an effective interest rate of just a third of one percent.
The National Treasury Management Agency (NTMA) issued the bond this morning on behalf of the Government.
Lenders offered €2.452bn at auction, helping drive down borrowing costs. The bond was sold at an annualised yield of 0.33pc – an extraordinarily low cost for long term debt.
To date the NTMA has raised €6.5bn of long term debt so far this year. It means the lower end of its full year target to raise between €6bn and €10bn has been passed.
Today’s bond auction is the first since May where the NTMA successfully raised €750m of shorter term debt due to be repaid in 2022 at a yield of 0.157pc.
Commenting on today’s NTMA auction of 10 year bonds, Minister for Finance Michael Noonan T.D. said:
“I welcome the sale of €1 billion in government bonds at a yield of 0.33%.”
“This bond sale shows a continuing confidence in Ireland and reflects the stability and certainty in Ireland’s future as a strong economy among international communities.”
Article Source: http://tinyurl.com/kbwqb42
