Irish bonds are set to beat the debt of other so-called peripheral European governments, Commerzbank AG said today.
"Outside of Greece, Ireland remains hot and continues to outperform," Frankfurt-based fixed-income analysts Christoph Rieger and Peggy Jaeger wrote in a report.
"With sentiment for Irish bonds remaining very positive and Ireland having funded already almost one third of its financing needs this year, we see further attractive potential in this position."
The National Treasury Management Agency (NTMA) yesterday raised €1.5 billion in the first of 11 scheduled bond auctions for the year. The agency sold €500 million of 4 per cent debt maturing in 2014, and €1 billion of 5.4 per cent debt maturing in 2025.
The NTMA has a funding target of €20 billion in 2010 to cover the projected budget deficit of €18.7 billion and a refinancing requirement of €1.2 billion.
This is lower than the €35.4 billion raised in 2009, of which €5 billion was pre-funding to this year.
Additional reporting: Bloomberg
