NTMA sells €500m in bonds at negative yield

The National Treasury Management Agency completed the sale of €500m in Irish bonds this morning.

The six-month bonds will mature in September. The total bids received was €1.965 billion - almost four times as much as the available supply.

They were sold at a yield of -0.1%. Negative yields mean paying more for the bond than its face value - which means investors are paying to lend the nation money.

Some reasons for buying bonds at negative yield include playing the currency markets, or speculating on future deflation.