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Ireland successfully auctions Treasury Bills


Eorna

Active member
Joined
Nov 24, 2008
Messages
215
Two cheers for effective action from the two Brians?
The two Brians are the reason that this is newsworthy, the staff at the NTMA are the ones that deserve the praise.
 

kerrynorth

Well-known member
Joined
Oct 5, 2005
Messages
1,525
Lads, stall the horses a moment - these were 1, 3 and 6 month bills FFS!!!
 

dmc444

Active member
Joined
Feb 6, 2009
Messages
193
I have to lauf- if they had not auctioned off the bills sucessfully you lot would be screaming about how badly they are running the country.

It does show that no matter what they do, they are just going to be criticised.
 

locke

Well-known member
Joined
May 2, 2007
Messages
3,090
Lads, stall the horses a moment - these were 1, 3 and 6 month bills FFS!!!
Exactly

All the demand indicates is that the markets don't think we're going to go bust before October.

Does the level of oversubscription indicate that the interest rate could have been lower?
 

Cato

Moderator
Joined
Aug 21, 2005
Messages
20,561
I have to lauf- if they had not auctioned off the bills sucessfully you lot would be screaming about how badly they are running the country.

It does show that no matter what they do, they are just going to be criticised.
Get your head out of your as$! By any objective standard they are doing an appalling job of running the country. Any action they carry out or decision they make is and will be treated quite cynically simply because, on the evidence to date, the two Brians could not find their own ar$es with both hands and a mirror.

Hats off to the NTMA boys (and girls!) though. However, these were only short term bills. Perspective please.
 

Middleaged

Active member
Joined
Jul 30, 2008
Messages
219
This is the second set of T/bills issued this year.
 

Cael

Well-known member
Joined
Jun 19, 2006
Messages
13,343
This is like a poor woman going to the pawn shop with her wedding ring to get some food for tomorrow's dinner. Ya, its good to eat tomorrow, but lets keep things in perspective.
 

feargach

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Joined
Dec 11, 2006
Messages
4,995
Lads, stall the horses a moment - these were 1, 3 and 6 month bills FFS!!!
Tell us where we are going wrong.

Is your point that if the buyers were dead certain that we were going to be broke in 7 months, they would still be nonchalant about lending to us on a 6-month basis?
 

Question R24U

Active member
Joined
Oct 5, 2008
Messages
269
On a major level this is good news: our credit line has not been crunched.
The bad news: we will pay a high premium for our credit.
The ugly: The Two Brians will continue to see "no problem/going forward" in borrowing to pay for social welfare, public sector pay and the miscellanous matters they spend other people's money on.
 

Defeated Romanticist

Active member
Joined
Apr 12, 2007
Messages
277
Exactly

All the demand indicates is that the markets don't think we're going to go bust before October.

Does the level of oversubscription indicate that the interest rate could have been lower?
Something tells me there will be no way Ireland will go bankrupt before October for no reason in particular...

and that we should flog every Treasury Bill we can print between now and then as if we were preparing for nuclear war.
 

feargach

Well-known member
Joined
Dec 11, 2006
Messages
4,995
Seriously kerrynorth, please put me straight on all this. I know far too little about how the various debt markets work.

The maths of it is beyond me, so I genuinely do not know if heavy buying of 6-month bonds indicates any possible bias at all as to confidence on the part of the creditors with respect to the debtor's longer-term (as in 7 or 8 month) viability.

All I know is: if I thought that a particular debtor was going to go broke sometime in the next 3 to 4 years, I personally would not consider buying bonds from that debtor for any time period, 6 months or less.

Please give me your own view on that matter.
 

spidermom

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Joined
Sep 13, 2008
Messages
9,189
As you all know by now I DON'T do economics...apart from here in this house where(touch wood!!!) we are not "overly" indepted,we do not spend what we ain't go...and the credit card is only for emergencies and online top ups for the teenagers mobiles!!
However this thread reminds me of those ads that used to be on the telly...."are you umemployed...have you a bad credit history.....have you defaulted on a loan????? Then come to us we'll give you the money!!!No problemo...no questions asked!".....and the in the tiny print and is gone too quickly off the tv for you do read it......btw we will screw you on your repayments!!!!
 

youngdan

Well-known member
Joined
Jul 9, 2007
Messages
1,378
It is not the amount of bids that matters. What matters was that there were over 1.6 billion of decent high bids. There could be 50 billion of bids but if they were low it would mean that the interest rate would be too high.

Any amount of bonds can be sold if a low enough bid is entertained.

You can not compare a 3 month bill and a 10 year bond
 

Digout

Well-known member
Joined
Oct 2, 2008
Messages
1,396
It is not the amount of bids that matters. What matters was that there were over 1.6 billion of decent high bids. There could be 50 billion of bids but if they were low it would mean that the interest rate would be too high.

Any amount of bonds can be sold if a low enough bid is entertained.

You can not compare a 3 month bill and a 10 year bond
Shocking that a government has to look for money on a month to month basis.....
 

youngdan

Well-known member
Joined
Jul 9, 2007
Messages
1,378
This would deserve a thread of it's own but briefly. It is not a good idea to have debt for shorter duration. Tuesday they ended up paying 5.08% for maturity in 2018. This was quite high. However on a historical basis paying 5% for 10 years is a bargain. It is sure to rise. They should borrow as much as possible because next month the rate will be higher. If there are fools enough to lend for 10 years then they should be released of their cash. There is not a chance in Hell of these bonds being paid.
 
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