Ireland set to issue long-term bonds today

Ireland's full return to the bond markets is expected to create significant demand from abroad today.

The National Treasury Management Agency says it is planning an auction of 10-year bonds, which are expected to be issued later today.

Global Strategist with Davy Capital Markets, Donal O'Mahony, said that it means up to €4bn of 10-year bonds will be auctioned at very attractive borrowing costs - as low as 3.5%.

He expects the interest from abroad to be two to three times what the NTMA is selling.

"Well this is probably going to be the only opportunity the market will have this year of getting a new issue from the Irish Government, so we expect the interest will be pretty substantial today, significantly more than the NTMA would be prepared to sell,"

"So a €3-€4bn issue will probably be oversubscribed by a factor of two to three times."