NTMA to raise up to €1.25bn from two government bonds

The National Treasury Management Agency (NTMA) is to raise up to €1.25 billion on Wednesday when it holds an auction of two government bonds, with maturity dates in 2023 and 2026. The NTMA announced recently that it would be holding an auction this week, and it is to continue its recent approach of opening up two bonds at once.

The bonds involved are the 3.9 per cent treasury bond 2023 and the 1 per cent treasury bond 2026. The NTMA said it would raise between €1 billion and €1.25 billion from the auction

The agency has already raised € 6.5 billion from bond sales so far in 2017, out of a full-year target of between €9 billion and € 13 billion. So after Wednesday’s auction its funding needs for the rest of the year will be limited. The NTMA has said it will hold another auction on June 8th.

The agency has moved to take advantage of historically low interest rates, with some speculation that longer-term bond rates could move higher in the months ahead. Investors are also nervous of the impact of the upcoming French presidential election.