Positive response to Irish bond extension

The National Treasury Management Agency has had a positive response after dipping its toe into the markets today.

The NTMA raised €3.53bn in a bond extension, in which investors with in a Treasury Bond due to mature in 2014, were offered the option of extending the maturity date by 13 months.

The move, the first of its kind since September 2010, received strong interest with 30% of the 2014 bonds being switched for repayment in 2015.

"We are very pleased with the strong take-up of this switch offer," said an NTMA spokesman.

"This exercise has demonstrated investor appetite for Irish Government paper and will support our plans for a phased re-entry to long-term debt markets.”

Donal O’Mahony from Davy stockbrokers said that the bonds were issued with a yield of around 5%.