Belfast Telegraph

Republic returns to bonds market

By Lyndsey Telford

The successful sale of €500m (£400m) in bonds by the Republic's government for the first time in almost two years is a milestone in Ireland's path to recovery, it was claimed.

Finance Minister Michael Noonan said Ireland secured a better interest rate than expected on the auction of the short-term Government debt.

Demand was high as the National Treasury Management Agency (NTMA) made a return to the international debt markets, with bids reaching €1.4bn (£1.1bn)

Mr Noonan said the auction of the bonds, which will mature after three months, was competitive and a good result.

"This morning's successful auction of three months Treasury bills by the NTMA was a very important milestone on Ireland's continuing path to recovery," he said.

The agency sold off its target amount of Treasury bills, securing a 1.8% yield - interest rate on the debt - a better deal than its estimated 2%.

The minister maintained the auction was an important first step in Ireland's overall plan to make a full return to the capital markets next year and to work towards reducing its deficit.

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