Yesterday Ireland sold $1.93 billion in bonds. It has now been announced that Ireland's National Treasury Management Agency could now consider the sale of bonds by banks.
This is according to Glas Securities, a Dublin-based firm who specialize in the fixed-income markets. "If market conditions allowed, a syndicated deal may be considered before year-end,” said Glas.
"There was also some speculation that EU central banks may have bought some short dated Irish government bonds late in the day.”
The National Treasury Management Agency (NTMA) sold $1.9 billion of bonds yesterday. Some $644 million of the four percent bond for 2014 was issued at an average yield of 3.627 percent, with $1.28 billion of the five percent benchmark 10-year bond issued at 5.386 percent, lower than the 5.537 percent recorded last month. Demand for the 2014 note rose.
Also NCB Stockbrokers said Bank of Ireland may test demand for a sale of debt.
Ciaran Callaghan, an analyst at NCB said "The strong demand recorded in the sovereign's issuance yesterday augurs well for the banking sector, demonstrating that there is still appetite for Irish paper, albeit at an elevated price.
"All going well, we believe that the group will test demand with a government guaranteed deal, before venturing into the unguaranteed arena. The first chance of this happening will more than likely be in early September."