Ireland raises 3 billion euros of 10-year debt amid bumper demand

DUBLIN (Reuters) - Ireland raised 3 billion euros ($3.3 billion) through the sale of 10-year debt on Thursday after receiving more than 44 billion euros' worth of orders, and the issue could cover as much as half of its annual funding needs.

The new benchmark bond was sold at a yield of 2.65%, one of the banks and brokers hired to sell the security said.

Ireland, which plans to raise 6 billion to 10 billion euros on the debt market in 2024, kicks off its annual funding drive each year with a syndicated sale that usually attracts high demand.

The order book on Thursday was among the highest Ireland's debt office has ever had. Dublin attracted a record 66 billion euros in 2020 when it sold 6 billion euros' worth of 10-year debt.

Bond sales across Europe have attracted strong demand this week, providing good news for governments who mostly face high funding needs, and reflecting appetite from investors who expect hefty central bank rate cuts this year.

Ireland has a relatively limited borrowing requirement this year due to its large cash balances and the government's healthy budget surplus - a rarity in Europe - which is forecast to hit around 2.7% of gross national income again in 2024.

The country's debt agency left its bond sale at the bottom end of a similar range last year.

The National Treasury Management Agency (NTMA) mandated Barclays, BNP Paribas, Cantor Fitzgerald Ireland, Citi, Danske Bank and J.P. Morgan as joint lead managers on the deal.

($1 = 0.9111 euros)

(Reporting by Padraic Halpin and Yoruk Bahceli; Editing by Toby Chopra and Hugh Lawson)