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Ireland Makes Storming Return To International Bond Market

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Ireland made a storming return to the international bond market on Tuesday as the bumper demand for the country's first debt sale since exiting its bailout helped drive down yields across the eurozone's periphery. The country's NTMA debt agency sold off €3.75bn of bonds but investors bid more than €14bn (£11.6bn) for the new 10-year bond – nearly four times the amount being sold. The bond – the first Dublin has sold since last March – had a yield of just over 3.5%, and marked a substantial step towards the target of raising up to €10bn this year. "The yield of 3.54% illustrates the strength of Ireland's international reputation and brings us far closer to the borrowing rates of the strongest European economies." Link

" the strength of Ireland's international reputation" What? 12,5 % unemployment and the total mortgages in arrears and permanently restructured 20% +

Who is buying Ireland 10-year bond's for 3.54% ?

Edited by rollover

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" the strength of Ireland's international reputation" What? 12,5 % unemployment and the total mortgages in arrears and permanently restructured 20% +

Who is buying Ireland 10-year bond's for 3.54% ?

ECB ?

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" the strength of Ireland's international reputation" What? 12,5 % unemployment and the total mortgages in arrears and permanently restructured 20% +

Who is buying Ireland 10-year bond's for 3.54% ?

+1

This is what I was also asking myself for all these years.Who are those "investors"? It canot be pension funds, which are officially broke, or goverments of other countries.

The answer is "hedge funds" that but with virtual money issued through the QE's and handed on the platter by the Goverments ro these "funds". These "funds" also buy in bulk houses in US and UK. Their "investments" do not make sense, but what have they got to loose? The money they use is not theirs, risks are not theirs. If there is a profit, then it is theirs. These "funds" are also shell companies of the banks.That is "capitalism" in which the whole structure of these cronies is supported by the goverments. Ridicolous and corrupt.

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+1

This is what I was also asking myself for all these years.Who are those "investors"? It cannot be pension funds, which are officially broke, or governments of other countries.

The answer is "hedge funds" that but with virtual money issued through the QE's and handed on the platter by the Governments ro these "funds". These "funds" also buy in bulk houses in US and UK. Their "investments" do not make sense, but what have they got to loose? The money they use is not theirs, risks are not theirs. If there is a profit, then it is theirs. These "funds" are also shell companies of the banks.That is "capitalism" in which the whole structure of these cronies is supported by the governments. Ridiculous and corrupt.

Markets move in cycles. Traders realise this for their own gain. Buying an asset that has already had a cycle down will mean that it will inevitably cycle up. Ireland is essentially backed by Germany through the Eurozone and ECB. For Ireland to fail Germany and Western Europe would have to fail so a 10yr 3.45 % for banks and funds doesn't sound so bad. Remember they are getting "free money" from the central banks at 0.5% so better to buy this bond than to lend to a hapless business or mortgagee at this rate - for one thing it is a "risk free" asset according to government rules (conveniently the government's own rules always say their debt attracts the least capital requirements) so its cheaper than lending to a 90% LTV mortgagee and safer and backed by the kleptocratic political system...nothing to lose.

BTW - your pension funds are probably buying this too....they would be bankrupt if they had real business accounting rules but again the government lets banks and funds change the rules to ensure they can kick the can of bankruptcy down the road for someone else to solve....its going to be great in 2016-2032...the laws of maths doesn't change so we need another trick like 1970s inflation or 1980s/00s housing boom to get us out of this one....I wonder what the bubble asset will be this time.....

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Maybe there is a belief that the Eurozone will not let one of its members default - therefore why not buy the Irish bonds, the return is certain

I wouldn't

What is more galling to joe public tucking away a bit of his wages, is that investment firms doing this will likely charge him 5% of his pot each year for doing it! That is the real scandal

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Ireland 's five-year borrowing costs have fallen to their lowest in the 92-year history of the state after Moody's upgrade. Irish five-year yields dropped 17 basis points to a low of 1.625pc, below the UK’s 1.709pc; and just below the 1.6254pc equivalent US yields touched at Friday's close. Five-year Irish yields topped 18pc in mid-2011 at the height of the eurozone debt crisis. Ten-year yields also fell 17bps on Monday, to 3.275pc, near the eight-year lows plumbed on January 8 and further below Italian and Spanish equivalents.

Would You Believe It? 12.50% unemployment, loans in arrears by more than three months continue to increase and abnormally low rate of repossessions, reaching a new high of 18%, 300,000 houses lying empty in Ireland, including 200 'ghost estates' with debt rating Baa3 sells 5 year bonds cheaper than US and UK!

Something doesn't quite add up.

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Would You Believe It? 12.50% unemployment, loans in arrears by more than three months continue to increase and abnormally low rate of repossessions, reaching a new high of 18%, 300,000 houses lying empty in Ireland, including 200 'ghost estates' with debt rating Baa3 sells 5 year bonds cheaper than US and UK!

Something doesn't quite add up.

Too big to fail principle applied at the national level? Implicit Euro-zone support to explicit euro-zone support. Fill yer boots?

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iceland had no problems either,nor did many asian or south american countries in the late 90s.

frankly i dont know why more dont default. Pension funds obviously dont care about their clients holdings, so the 'frozen out' scaremongering shouldnt be an issue.

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iceland had no problems either,nor did many asian or south american countries in the late 90s.

frankly i dont know why more dont default. Pension funds obviously dont care about their clients holdings, so the 'frozen out' scaremongering shouldnt be an issue.

+1

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