Ireland raises €1.5bn in bond sales amid rising yields as full funding nears

THE National Treasury Management Agency (NTMA) has successfully raised another €1.5 billion through the sale of Irish Government bonds, albeit at a higher than usual cost.

The cost of the borrowing this month was higher than previous auctions, with the interest rate — or yield — demanded by bond investors on 10-year bonds up from 4.72% to 5.54%. The yield on the six-year bonds auctioned yesterday actually declined marginally to just under 4.5%.

However, the latest bond auction means the NTMA has completed 90% of its proposed €20bn borrowing target for 2010 and that — added to the €5bn carried over from last year — means the Irish Exchequer is now fully funded into the second quarter of next year.