The National Treasury Management Agency, the body that manages the State's debt, has said it will "monitor developments" in the bond markets over coming days and weeks in the wake of the UK Brexit vote.
In a statement isued on Friday afternoon, the agency said the Republic’s funding position is “strong” at the moment, with €6 billion of a targeted €6 - €10 billion for this year already raised.
The NTMA is due to announce its funding plan for the third quarter on Friday next week. The State had cash balances of more than €10 billion at the end of May, with the next bond redemption not due until October next year.
Mixed session
Irish 10-year bonds have had a mixed first session since the Brexit vote, with the yield initally rising by 0.06 percentage points, to 0.82 per cent, before falling back down to 0.78 per cent. This came as sterling suffered its sharpest fall on record and Irish and European shares were also severely punished.
“Ireland’s fundamental debt dynamics are strong and improving. This has been reflected by investors and has enabled the NTMA to borrow at attractive interest rates. These improved fundamentals have also led to Ireland regaining its A-rating with all the major credit rating agencies last month notwithstanding the possibility of this outcome in the referendum,” the agency said.
