NTMA sells 10-year bonds at record-low 0.136% rate

The National Treasury Management Agency (NTMA) sold 10-year bonds on Thursday at a record-low interest rate of 0.136 per cent, reflecting growing expectations that the European Central Bank (ECB) and other major central banks are on track to cut rates.

The NTMA, which manages the Government debt, auctioned €600 million of 10-year bonds and €400 million of 15-year debt, it said in a statement. The 15-year bonds were priced to carry a market interest rate, or yield, of 0.497 per cent.

Borrowing costs on the international markets have come down sharply so far this year, as concerns over the state of the global economy have prompted investors to bet that major central banks will ease monetary policy.

Interest rates

The US Federal Reserve is widely expected to cut interest rates by at least a quarter of a point next month, while the ECB hinted last month at future rate cuts and a return to its quantitative-easing bond-buying programme to bolster a weakening euro zone economy.

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Financial markets will be eyeing ECB minutes from its most recent monetary-policy meeting and US Fed chairman Jerome Powell’s testimony before the senate banking committee on Thursday for further insights.

The yield on Ireland’s 10-year bonds has fallen from 1 per cent in January.

With the completion of today’s auction, the NTMA has raised €11.25 billion of its full-year target of issuing €14 billion to €18 billion of long-term debt.