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Ireland Sells 1.5bn of Bonds


johnfás

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Joined
Feb 22, 2007
Messages
2,727
1 bn of 8 year bonds - average yield 6.02%, up from 5.09%

500m of 4 year bonds - average yield 4.77%, up from 3.1%
 

HarshBuzz

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Feb 28, 2008
Messages
11,935
those yields are atrocious

3 billion is now completely out of date, 5 must be the new minimum
 

droghedasouth

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May 10, 2007
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Another triumph for our autodidact genius of a Finance Minister.
 

ChickenBiryani

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Jul 2, 2010
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686
Coupon is irrelevant in a way.

The price allocated for the 2018 was 90.485. That means that we issued €1bn in bonds, but only actually received €904.8m for them.

The yield takes into account the coupon + the effective discount to illustrate the average interest rate being paid.
 

He3

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Joined
Oct 1, 2008
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17,094
Why are we paying over 6% when the ECB/IMF money is available at 5%?

Why are we borrowing at over 6 only to turn around some of that money by way of our share of the EU-organised loans to Greece at 5?
 

Disillusioned democrat

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Joined
Mar 16, 2010
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15,600
Why are we paying over 6% when the ECB/IMF money is available at 5%?

Why are we borrowing at over 6 only to turn around some of that money by way of our share of the EU-organised loans to Greece at 5?
Two reasons - Brian and Brian.
 

HarshBuzz

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Feb 28, 2008
Messages
11,935
Why are we paying over 6% when the ECB/IMF money is available at 5%?

Why are we borrowing at over 6 only to turn around some of that money by way of our share of the EU-organised loans to Greece at 5?
because we still have notional control of our own country in this scenario
 

ChickenBiryani

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Jul 2, 2010
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686
We are paying this rate because we continue to insist on maintaining the charade that we can work our way out of this situation ourselves when it is plain to anyone with half a brain that we have long passed the point of no return and nothing anyone does internally is going to fix it.

Our rates are into self-fulfilling prophecy land - at €20bn per annum of a deficit the additional interest alone at these rates is €1.2bn, more than the supposedly "savage" public sector pay cuts of last year managed to save on an after tax basis. We are merely running to stand still at best, a bit like Wile E Coyote chasing the roadrunner off the edge of the cliff, afraid to look down.
 

rubensni

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Apr 27, 2009
Messages
737
Why are we paying over 6% when the ECB/IMF money is available at 5%?

Why are we borrowing at over 6 only to turn around some of that money by way of our share of the EU-organised loans to Greece at 5?
I know, but once we pass the event horizon of the bailout fund we'll never escape. The gamble is it's better to pay 6%+, with a chance of it falling in the medium term, than 5% ad infinitum with nothing to look forward to other than default.

Either way, the modern day Michael Milkens are making a fortune out of us.
 

orbit

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Joined
Dec 5, 2008
Messages
701
A little bit of perspective please. Yes, the yields are atrocious, and if they stay that high for an extended time, we are screwed. But, the aggregate interest rate on the national debt is still only around 4.15%, even after that auction. It does mean tougher budgets ahead, and there is no time to lose, in finalising the Anglo story.
 

MPB

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Nov 27, 2009
Messages
4,465
Why would the ECB let us pay more than 5% for these bonds?

They lend to our dud Banks at 1% so that they can repay German Banks and the ECB make our citizens pay 6% to cover these loans to the Banks.

Lisbon my hole. It is about time we started to cop on.

They are stealing our money to bailout German Banks.
 

DuineEile

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Joined
Aug 29, 2010
Messages
14,939
Can anyone put sense on this for me?

I am heavily indebted. My wife sees a niece piece of furniture. She tells me it is a bargain. I tell her it may be a bargain, but we can't afford to finance it, so we do without.

Surely there is a point before we can't borrow (ie no one will lend to us), that we simply don't want to borrow?

6% seems awfully high. Higher than my mortgage, so why are we borrowing it?

D
 
G

Gimpanzee

Why would the ECB let us pay more than 5% for these bonds?

They lend to our dud Banks at 1% so that they can repay German Banks and the ECB make our citizens pay 6% to cover these loans to the Banks.

Lisbon my hole. It is about time we started to cop on.

They are stealing our money to bailout German Banks.
err, there's the small matter of the >€20bn pa deficit that has bugger all to do with banks in Germany or anywhere. That's what we are really borrowing for.
 
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