Back in bonds!

Not quite as catchy as an AC/DC song with a similar name, the Irish Times reports that Ireland was back in bonds yesterday.The NTMA managed to swap about €3.5B of bonds that were due for repayment in 2014 into new bonds that are due in 2015. This is a good thing, as it reduced the amount of refinancing that will need to be done by NTMA in 2014, the first year of Ireland's post Troika existence.
However, to call it a massive success and claim that it shows an "appetite for Irish Government paper" is stretching things a bit. As opposed to you or I getting a term extension on our mortgage which reduces our monthly repayment, we have actually increased the cost of this borrowing from a 4% coupon to a 4.5% coupon. So this postponement of a year will cost us an additional €35M in 2012 and 2013. That crafty bond market doesn't give stuff away for nothing.
I am sure that it is just coincidence that the NTMA carried out this bond swap on the exact same day as yet another huge, un-guaranteed Anglo bond was repaid. Likewise I'm sure that the arrest of Ivor Callely yesterday was also just another coincidence, just like the arrests of Sean Fitzpatrick were in the past. I wonder what poor unfortunate will be perpwalked the next time the Rothschilds come looking for their cash back.