NTMA bond auction success

THE National Treasury Management Agency’s (NTMA) decision to press ahead with another bond auction, despite concern over the rising cost of borrowing, proved justified — with the markets reacting positively to another successful fundraising round.

On a solid day’s trading on the ISEQ, the two main Irish banking stocks regained lost ground; AIB up by 5.6% at 85c and Bank of Ireland up by 5.45% at 81c.

Although the NTMA had already met 90% of its borrowing target for 2010 and secured funding up to the second quarter of next year, the profile of the latest auction rose on the back of a marked increase in borrowing costs.