Thursday, February 09, 2012
Ireland may try an "opportunistic" bond sale should its debt continue a two-and-a-half-month rally after the European Central Bank floods banks with a second round of three-year loans later this month, according to Dublin-based Goodbody Stockbrokers.
The country’s two-year bonds yielded 4.47% yesterday, down from 10.06% on November 25. Ireland’s National Treasury Management Agency, which last sold bonds in 2010, may try a sale if the yield falls below 4%, said chief economist at Goodbody Dermot O’Leary.
NTMA spokesman David Clerkin declined to comment on the timing of a market return.
"I’m sure the NTMA are doing the preparations as we speak, given the level of interest and momentum in peripheral euro-zone bonds in general, excluding Greece," said Mr O’Leary in a phone interview.
Irish bonds have delivered the best returns in the euro area in the past year, as the ECB bought the nation’s debt and investors grew more confident that the government will be able to pay its bills.
© Examiner Publications (Cork) Limited, City Quarter, Lapps Quay, Cork. Registered in Ireland: 73385.
