T-Bills and bonds… July 10, 2012Posted by WorldbyStorm in Economy, European Politics, Irish Politics.
Here’s one very important caveat, as noted by Ian Kehoe in the SBP as regards our return to the markets last week.
The National Treasury Management Agency (NTMA), the state agency that manages Irish debt, did not disclose the buyers of the so-called T-bills, but the bond dealers in Dublin said that around 90 per cent of the bills were snapped up by overseas investors, principally British and French banks.
Although T-bills are debt instruments, they are not bonds. For the government and the NTMA, this is the next challenge – getting back into the long-term bond market. Irish bond yields maintained their recent gains last week with the state (theoretically) able to sell 10-year bonds at 6.28 per cent.