Irish Sells 600mn Euros of Treasury Bills

Ireland is reported to have sold over 600 million Euros of treasury bills at a lower level on Thursday. The country’s step sheds light on the country’s attempt to shrug off a credit downgrade by Standard & Poor's.

The debt agency's 400 million to 600 million target range is reported to be half of the normal auction amount. Such a step signifies that Dublin can be selective in its fundraising in jittery markets.

"The fact that it's 50 percent of the size of the August 12 auction certainly helps but in light of the S&P downgrade, I think it's a very good result", Fergal O'Leary at Dublin-based Glas Securities was quoted as saying.

The average yield on bills maturing in February 2011 marked a squeeze to 1.978% compared to 2.458% marked two weeks ago. In addition, it fetched a stellar bid-to-cover ratio of 10.1 on a sale of just 200 million Euros compared to 500 million witnessed the last time.

Presently, Ireland is struggling with a severe debt crisis, which has its roots in Greece. However, it reverberated to other Euro zone countries including Spain as well.

The country has faced a steep plunge in its tax revenues accompanied with a rise in the unemployment rates that touched 13.7pc in July.