The National Treasury Management Agency (NTMA) sold €500 million of short-term debt, known as treasury bills, on Thursday to investors who agreed to pay the Republic a rate of 0.36 per cent for holding their money.

This marked the first auction of 12-month treasury bills since the financial crisis, with the NTMA having previously focused on selling three- and six-month notes. However, it was the fifth successive transaction in the past year at which the agency sold bills priced at a negative yield for investors.

Oversubscribed

The latest auction was more than three times oversubscribed, according to the NTMA.

More than $8 trillion (€7.1 trillion) of government bonds globally are currently trading at a yield at less than zero, as a result of central banks’ ultra-low interest rates and bond-buying programmes.

However, the level is down from a peak of $10 trillion in early July, according to analysts at JP Morgan Chase, as investors increasingly question for how much longer central banks will have the ability and determination to pursue their current market stimulus programmes.

Last week, the European Central Bank disappointed many investors by deciding to hold its stimulus programme steady.