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First Bond Auction Since 2010 - Bloomberg
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3/13/14 9:eland Raises 1 Billion Euros in First Bond Auction
Since 2010 - Bloomberg
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Ireland Raises 1 Billion Euros in First Bond Auction Since
2010
By Dara Doyle - Mar 13, 2014
Ireland raised 1 billion euros ($1.4 billion) in its first bond
auction since September 2010, cementing its
return to international credit markets.
The Dublin-based National Treasury Management Agency sold the
2024 bonds to yield 2.967 percent, th
organization said on its website. Thats the lowest on recordfor
a 10-year auction. Investors bid for 2.9
times the amount of debt sold.
Ireland exited an international bailout plan in December, the
first euro-area nation to emerge from a
rescue, boosting confidence in the regions recovery from its
four-year debt crisis. Investors are returnin
to the markets they shunned during the financial woes. The
average yield to maturity on bonds from
Greece, Ireland, Italy, Portugal and Spain fell to 2.438 percent
this week, the lowest in the currency bloc
history, according to Bank of America Merrill Lynch indexes.
In January, Moodys Investors Service restored Irelands
investment grade, after a revival from thebanking collapse that had
threatened to destroy the economy and forced the nation to seek a
bailout in
November 2010.
Irish bonds will continue to benefit from growth outperformance
relative to the euro area, said Anders
Moller Lumholtz and Owen Callan, analyst at Danske Bank A/S
(DANSKE), which is a primary dealer in
Irish debt. We also expect Moodys to deliver another rating
upgrade this year.
The NTMA raised 3.75 billion euros in a sale of a 2024 bond via
banks in January at a yield of 3.543
percent. In the secondary market, the 10-year yield has fallen
from a euro-era peak of more than 14
percent in July 2011, setting a record-low of 2.99 percent
today, as the government reined in its budget
deficit and real-estate prices began to stabilize under the
bailout program.
To contact the reporter on this story: Dara Doyle in Luxembourg
[email protected]
http://topics.bloomberg.com/greece/http://topics.bloomberg.com/italy/mailto:[email protected]://www.bloomberg.com/quote/DANSKE:DChttp://topics.bloomberg.com/italy/http://topics.bloomberg.com/greece/http://www.bloomberg.com/quote/IRLB10AV:IND
