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NTMA to issue a 10-year bond

THE National Treasury Management Agency (NTMA) wants to issue a 10-year bond this year as debt market conditions for Ireland continue to normalise.

NTMA chief executive John Corrigan has told the Oireachtas finance committee of the agency's intention to issue the longer-term bond.

He said the NTMA has recovered normal market access in short-term debt issuance, with the last treasury bill auction resulting in an annualised yield of 0.2pc, a very low cost of borrowing.

He also said financial markets had priced in the prospect of a deal on the promissory notes, helping to reduce the yield.

Bailout

Mr Corrigan told the committee the market re-engagement would position Ireland to successfully exit the EU/IMF bailout programme on schedule at the end of the year.

The NTMA has said it will focus on stepping up its re-engagement with the market this year. He said the agency would raise €10bn during the year and that raising €2.5bn through a successful debt issue earlier this month meant that the NTMA was already a quarter of the way towards this target.

Mr Corrigan said that it would be very positive if the maturities of Ireland's bailout loans could be extended.

There is a bond of €5bn due to be repaid in 2015, which, if extended, would mean that Ireland would have to raise €5bn less from the markets that year, he added.