Okay, the interest is not great, but it’s well below the 7% from just before Ireland was forced to take shelter in the not so loving arms of the Troika… Dan O’Brien:
Yesterday’s bond sale served a dual purpose: to test market demand for Irish Government bonds and to reduce the size of the repayments due in January 2014. The latter was considered important because the single repayment of €11.8 billion in two years was unusually large. It would also have taken place just as the Government is scheduled to exit the bailout. Yesterday’s operation lowers the January 2014 hurdle.
A spokesperson for the European Commission in Brussels said the result of the bond auction was “encouraging as it shows increasing confidence among investors in the strong commitment of the Irish authorities to redress the situation and fully implement the EU-IMF programme. The result is particularly positive as the maturity is well beyond the end of the programme.”
Which is good, I suppose. Though Dan adds this little kicker:
Barry Nangle, head of bonds at stockbroking firm Davy, the only Irish dealer of the Government’s bonds, said the “significant majority of investors switching were the Irish domestic banks”.
Well, I suppose charity always starts at home?