NTMA sells €500m of short-term debt at negative rate

ECB policy means investors continue to pay states to hold their money for short term

Pictured is Conor O’Kelly, chief executive, NTMA

Pictured is Conor O’Kelly, chief executive, NTMA

 

The National Treasury Management Agency sold €500 million of short-term debt on Thursday with the notes priced to yield a negative rate of 0.41 per cent, meaning investors are paying the State to hold their money.

The 12-month Treasury Bills were 2.8 times oversubscribed.

Short-term government debt across the euro zone has been carrying a negative yield for some time, given the European Central Bank’s easy-money policy under its so-called ongoing €2.3 trillion quantitative easing bond-buying programme.