Wednesday, September 12, 2012

Bond Prices Rise

Here is a screen-capture of yesterday’s Daily Outstanding Bonds Report from the NTMA.

Outstanding Bonds 11-09-12

And here is the equivalent from today’s report.

Outstanding Bonds 12-09-12

The price of all Irish government bonds rose today and the associated yields to maturity fell accordingly.  The biggest change seems to have been in the February 2015 bond which rose in price from €104.87 to €106.19 and is now yielding 1.86%.  This is the only inversion, albeit minor, in the yield curve as the January 2014 bond is yielding 1.89%.

On the 26th of July, the NTMA re-launched Ireland’s government bond programme.  Among the steps taken that day a new October 2017 bond was issued.  This had a coupon of 5.5% and on the day the bond sold for €98.27 per €100 unit giving a yield of 5.9%.  As can be seen above the bond is now trading at €106.88 and purchasers at that price are getting a yield of less than 4%. The price of the bond has risen nearly 9% in seven weeks.

No comments:

Post a Comment