LONDON (MNI) – Ireland’s National Treasury Management Agency (NTMA)
said it switched a total of E3.53 billion at auction Wednesday from an
existing 2014 bond to a new 2015 bond maturity.
The debt agency purchased the 4.0% Treasury Bond 2014 at 98.35 and
yield of 4.902% and sold a new 4.50% bond maturing 18 February 2015 at
98.20 and a yield of 5.152%.
The switch auction marks the NTMA’s first significant engagement
with the market for Irish paper since September 2010 and has reduced the
outstanding size of the 2014 IGB from E11.857 billion.
The NTMA said its switch auction comes in response to approaches
from market participants and will help address demand for Irish
government paper maturing in 2015 that is currently unmet.
“This exercise will help us smooth the maturity of the bond due in
January 2014,” said the NTMA spokesman in a press release. “The decision
to undertake this now reflects substantial demand among investors for
our short-dated paper and the resulting decline in yields on Irish paper
recently.”
–London newsroom: 00 44 20 7862 7494; email:nshamim@marketnews.com
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