All eyes on interest rates as NTMA prepares to borrow €1.5bn

The National Treasury Management Agency (NTMA) will try to raise up to €1.5bn for the Exchequer in a bond auction tomorrow.

Rates rose to 6.37% last week, and tomorrow it will be revealed whether the money the State is seeking to borrow will have interest of that level charged on it.

Markets expert Rory Gillen said he expected the auction to be fully subscribed, but agreed the rate of interest being charged will be crucial.

"It's concerning because you're having to finance long-term money at these rates, which is very penal when you've got depression or deflation."