Ireland is this week set to hold its first bond auction since its 2010 international bailout. The National Treasury Management Agency (NTMA) announced yesterday that it will sell €1bn of its March 2024 bond on Thursday to boost liquidity in the paper which was issued via a syndication of banks in January to bumper demand. <p>
We expect a smooth auction. It will be the icing on the cake for the sovereign as regards getting back to a more normal primary bond market set-up. The market will see it as a buying opportunity and we don’t expect much price concession over the next couple of days. <p>
<b>Irish bonds, like debt issued by other lower-rated Eurozone states, has been in demand from foreign investors in recent months and now benchmark 10-year paper yields just 3.10%, compared with almost 15% at the peak of the debt crisis in July 2011.
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