Scramble to Buy Irish Government Bonds

Investors were eager today to buy Irish government debt in the countries first auction of sovereign debt since the end of the bailout.

Some € 3.75 billion worth of 10 year bonds  were offered on the global money markets with orders worth €14 billion euro (£11.6 billion) coming in according to the National Treasury Management Agency (NTMA).

This sees Irelands bond yields at their lowest since 2006, showing that the State will make a successful return to debt markets.

 The NTMA has also appointed Barclays, Citi, Danske Bank, Davy, Deutsche Bank and Morgan Stanley as joint lead managers for a 10-year “euro benchmark transaction”.

 ‘‘The deal is likely to be well over subscribed and will mark an important milestone for Ireland and, indeed, the euro area,’’ said Dermot O’Leary, chief economist at Goodbody Stockbrokers in Dublin.

‘‘From a funding point of view, Ireland is already in a comfortable position, but the sale today is more about Ireland’s return to normality.”