Tuesday, October 01 12:41:52
The NTMA announced today that, in view of its relatively strong funding position, it has decided to suspend its monthly Treasury Bill auctions for the final quarter of 2013.
The National Treasury Management Agency has also decided to defer consideration of any further medium or long term bond issuance until early next year.
Its last auction was on September 19th, when it sold 500 million of Treasury Bills.
Total bids received amounted to 1.67 billion, about 3.3 times the amount of offer.
Owen Callan of Danske Bank Ireland welcomed the announcement from the NTMA as another indication that Ireland has left the dark days of the past few years behind it.
This is not really a big surprise, though it does serve to illustrate that Ireland is currently in a strong funding position with a large cash buffer that will comfortably see us through to next year. And when we do tap the markets in 2014, it is likely that we will do so at at least the same level of cost and perhaps better. The NTMAs move is both understandable and rational and does send out a clear message to the markets that Ireland is on track, he said.