Additional bond sales an ‘option’

Dublin: The Government may consider selling more bonds than initially planned this year to help finance the 2010 budget deficit as investor sentiment toward the country improves, according to the National Treasury Management Agency.

While the Government has no “specific” plan, it may tap the markets if there is enough demand, said Oliver Whelan, the head of funding and debt management at the Dublin-based agency.

Ireland has raised €22.7 billion, or 90%, of the €25bn earmarked this year, he said.

“If the opportunity in terms of market demand is there, I wouldn’t rule out at some stage doing some elements of pre- funding,” Whelan said. “There is no particular plan to pre-fund at this stage.”

The yield difference, or spread, between 10-year Irish bonds and the benchmark German bunds narrowed to 199 basis points. It peaked at 283 basis points in March.