COYBIG

Two bits of good news today for the motherland. The NTMA which is the Irish treasury managed to raise EU500MLN euros at a yield of 0.7% for a duration of 3 months (matures Dec17th). The bid to cover was powerful at 3.03 times i.e well oversubscribed. The best bit about it is the last time we did this back in June the yield was 1.8% so we have managed to shave a very healthy 110bps of our demanded interest payments. Which in english means investors are willing to lend us a few squid and are much more assured that they are going to get it back as they are not demanding as exorbitant an interest rate. Also the CPI or consumer price index rebounded from a low in July of -.2% (i.e deflation) to +0.6% a sign that demand for goods and services are picking up. All healthy signals and signs that the pain that has been endured over last four years or so hopefully is starting to ease. I will say it again ….” a lot done….more to do.”

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