Ireland's National.....>

IRELAND BOND AUCTION PREVIEW: Ireland's National Treasury Management Agency

(NTMA) taps E1.0bln indicative size of the Irish 1% 2026 and IGB 1.7% 2037

today. 

- BACKGROUND: Ireland is well ahead in its issuance plans, having sold 10.5bln

(incl. private placements) of their E9-13bln target. Recently, Irish debt

weakened as the State said it wanted to repay some IMF loans early and could

lead to extra supply, even if this is next year's business, an overfund in 2017

must be expected. Secondary market trading in Ireland is dominated by PSPP and

so auctions are good liquidity events; the 2037 has not been sold since January.

- RV: Irish fundamentals have improved rapidly and spreads to core/semi-core

have tightened smartly. However, there is still decent daylight between Ireland

and France/Belgium beyond the 5Y section of the curve. The German and Dutch

curves are somewhat expensive versus other semi-cores in the 15-30Y tenors. 

- HISTORY: The 2026 IGB was last sold on Jun 8 at 0.72% with a cover of 2.25.

The 1.7% 2037 was last sold by syndication in January. 

- RESULTS: The auction closes at 0900GMT and results are due shortly after that.