NTMA prepares for treasury bills sale


IRELAND WILL take another step towards re-entry to credit markets with plans for a third sale of treasury bills. The National Treasury Management Agency yesterday said it plans to sell €500 million of three-month treasury bills on October 18th.

Last month, the NTMA sold €500 million worth of treasury bills due December 17th at a yield of 0.7 per cent. This compares to a yield of 1.8 per cent on similar three month bills sold in July.

Addressing the Irish Bankers Federation yesterday, Minister for Communications, Energy and Natural Resources Pat Rabbitte said Bank of Ireland and AIB had successfully completed new capital markets transactions which allowed some re-entry into the wholesale markets following on from the success of NTMA bond issues in the past three months.

“While these issues may seem more like the basics, that is what the Government and Department of Finance have needed to do in order to re-establish a foothold in the international markets and maintain the positive momentum behind the hard work that has been achieved in terms of the Programme for Government and troika targets.”

Irish bond yields have fallen since EU leaders agreed on June 29th to examine the Irish financial sector “with a view to further improving the sustainability of the well-performing adjustment program”.

Spain yesterday sold €4.9 billion of 12- and 18-month debt, beating the target of €4.5 billion.