LONDON (MNI) – Ireland’s National Treasury Management Agency (NTMA)
said its switch auction offer announced earlier Wednesday is in response
to approaches from market participants and will help address demand for
Irish government paper maturing in 2015 that is currently unmet.
The switch auction marks the NTMA’s first significant engagement in
the market for Irish paper since September 2010.
“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.”
Earlier Wednesday, the NTMA said it will announce at 1400 GMT today
the details of a switch auction from the 4.00% 2014 bond to a new 18
February 2015 bond.
The announcement will contain information such as the price at
which the NTMA will buy 4% Treasury Bond 2014, the coupon of new bond
maturing 18 February 2015 and the price at which the NTMA will sell the
new bond maturing 18 February 2015.
The switch will be on a matched nominal-for-nominal basis. The
settlement date is February 1, 2012.
“The switch will remain open from the time of the announcement
until 1600 GMT and is open to recognised primary dealers only,” the
press release said.
–London newsroom: 00 44 20 7862 7494; email:nshamim@marketnews.com
[TOPICS: MMXBO$,MNXAU$,MFX$$$,MGX$$$,M$X$$$]
