DAVY VIEW

Yesterday (July 9th), the National Treasury Management Agency (NTMA) raised €1.5bn through an auction of three government bonds. Notably, the yield on the €500m raised on the bond maturing in May 2027 was -0.257%, a fresh low for an auction. The transaction brings total NTMA issuance via bond auctions and syndications up to €20bn this year, within its €20-24bn target for 2020. Irish spreads will continue be contained by the ECB PEPP purchases, which should grow towards €10bn by end-2020.