Closes today apprently, no result yet.
forexyard.com/reuters/popup_ … D-UPDATE-2
DUBLIN, Jan 7 (Reuters) - Ireland’s National Treasury Management Agency (NTMA) said on Wednesday it was seeking to raise 3 billion euros ($4.09 billion) in a five-year benchmark bond and planned a further foray later this year.
“We are quite confident we will be able to do a 3 billion deal,” the NTMA’s director of funding and debt management, Oliver Whelan, told Reuters in an interview.
“It’s pretty early but there is a good spread of investors from right across Europe,” Whelan said after order books opened on Wednesday.
Investors included central banks and asset managers, he said.
Price guidance has been set at mid-swaps plus 90 basis points area, Whelan said, adding that the book was expected to close on Thursday.
“The idea is we’ll leave it open to see how much interest there may be from Asia overnight,” he said.
A glut of euro zone sovereign borrowing is expected this year as governments seek to raise funds to pay for their recession-fighting fiscal stimulus packages.
Germany was first out the block on Wednesday, shifting only two thirds of the 6 billion of 10-year paper it put up for auction, an outcome that triggered a steep fall in Bund prices and a corresponding jump in long-term yields.
Austria’s debt agency said on Wednesday it was selling a 3 billion euro syndicated 5-year bond and would price the deal on Thursday. It set a guidance of 10-15 basis points over mid-swaps for the deal, adding that it was already oversubscribed.
“With the benefit of hindsight, I am sure that both Austria and Ireland, which opened their books before the German Bund auction results were released, might have waited a couple of more days before starting the syndication process,” said David Schnautz, bond analyst with Commerzbank in Frankfurt.
“I am bewildered that Austria and Ireland are now competing in the five-year area of the yield curve like this. It may explain why they are both declaring hopes to raise 3 billion euros. It is an old tactic in the hope that the deals receive a quality oversubscription and raise more than that. But we will see if they do,” Schnautz said