Ireland’s First Bond Sale After Bailout Exit a Success

Ireland made a storming return to the international bond market on Tuesday as the bumper demand for the country’s first debt sale since exiting its bailout helped drive down yields across the eurozone’s periphery.

The country’s NTMA debt agency sold off €3.75bn of bonds but investors bid more than €14bn (£11.6bn) for the new 10-year bond – nearly four times the amount being sold.

The bond – the first Dublin has sold since last March – had a yield of just over 3.5%, and marked a substantial step towards the target of raising up to €10bn this year.

“This sale shows Ireland has fully exited the EU/IMF [bailout],” Michael Noonan, the finance minister, said in a statement.

“The yield of 3.54% illustrates the strength of Ireland’s international reputation and brings us far closer to the borrowing rates of the strongest European economies.”

Ireland’s cost of borrowing over 10 years has tumbled from a peak of about 15%, which was reached in 2011 as the eurozone’s debt crisis intensified.

via The Guardian

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Alfonso Esparza

Alfonso Esparza

Senior Currency Analyst at Market Pulse
Alfonso Esparza specializes in macro forex strategies for North American and major currency pairs. Upon joining OANDA in 2007, Alfonso Esparza established the MarketPulseFX blog and he has since written extensively about central banks and global economic and political trends. Alfonso has also worked as a professional currency trader focused on North America and emerging markets. He has been published by The MarketWatch, Reuters, the Wall Street Journal and The Globe and Mail, and he also appears regularly as a guest commentator on networks including Bloomberg and BNN. He holds a finance degree from the Monterrey Institute of Technology and Higher Education (ITESM) and an MBA with a specialization on financial engineering and marketing from the University of Toronto.
Alfonso Esparza