NTMA raises 42% of 2010 target

The National Treasury Management Agency (NTMA) has raised 42 per cent of its total bond issuance programme for 2010 with the announcement this morning that it raised €1.5 billion in its second auction of 2010.

According to the NTMA the total bids received were 2.8 times the amount allocated.

Two bonds were offered in the auction - a 4 per cent Treasury Bond maturing in 2014 and a 4.5 per cent Treasury Bond for 2020.

Some €600 million of the 4 per cent Treasury Bond 2014 was issued. This bond was sold at an average yield of 3.033 per cent. The NTMA sold €900 million of the 4.5 per cent Treasury Bond 2020 at an average yield of 4.745 per cent.

Today's auction brings the total funds raised from the bond market in 2010 to €8.4 billion, or 42 per cent of the NTMA's bond issuance programme of €20 billion for 2010.

In addition to its €20 billion funding programme for 2010 the NTMA carried forward into the year some €5 billion of long-term advance funding achieved in 2009.

The NTMA said it will continue its regular series of monthly bond auctions. The next auction is scheduled for March 16th, 2010.