Danske Keeps Buy Recommendation on Irish Bonds Versus Core European Peers

Dow Jones
09/03

0557 GMT - Danske Bank maintains its buy recommendation on Irish government bonds versus core EU, despite the less-liquid market and already significant tightening to peers in terms of ASW spreads, chief analyst Jens Peter Sorensen and analyst August Hyldgaard say in a note. They point to Ireland's "solid macroeconomic fundamentals, a pick-up to Aaa-rated peers and the outlook for a rating upgrade." They reckon that investors should use Thursday's auction to buy Irish government bonds relative to, for example, Germany. Ireland's National Treasury Management Agency will auction 1 billion euros to 1.25 billion euros in October 2032- and May 2035-dated bonds.

 

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