Ireland is back! There’s huge demand for Irish debt in its first auction since exiting its bailout.
An overflowing order book north of €13bn for Ireland’s 10 year bond sale – its first debt sale since formally exiting an international bailout programme last month — has allowed bankers to tighten the pricing of the deal.
Dublin’s treasurers had intended to cap the size of the deal at about €3bn-€3.5bn, but the ravenous demand could allow it increase it markedly and make a big dent in its funding requirements for 2014 by early January.
This continues the bailout success story that is Ireland.
Jamie McGeever of Reuters posted this chart showing the spread between Irish borrowing costs and French borrowing costs. They’re shrinking quite rapidly, an inciation that Ireland is nearly on par with “core” Europe.