Ireland is heading back to the debt markets. It plans to recommence Treasury Bill auctions on Thursday 5 July 2012 by offering “€500 million of Treasury Bills with a three-month maturity in its first such auction since September 2010″:
Excellent stuff as far as it goes, but we are minded to point out that Ireland is auctioning T-bills — and three month T-bills at that. You know, the same kind of short-dated debt that Greece and Portugal have been getting out regularly during their own crises.
Now, we don’t want to get too down on this announcement, we are just wary of getting overly excited it. Considering the maturity of the bills and the EU-IMF funds at Ireland’s disposal, it is highly likely that Ireland will get this away at relatively low yields to much applause.
Still, the fact that Irish long-term borrowing costs fell below those of Spain for the first time since February 2009 following the EU summit agreement is genuinely good news, and this T-bill sale is another small step that will build confidence.