Ireland just issued a 100-year bond, and the yield is lower than the US 30-year

Ireland's National Treasury Management Agency (NTMA) just issued its first-ever 100 year long bond, and it's yield is pretty low.

According to a release, the so-called century bond will mature in 2116 and yields 2.35%. For reference, the US 30-year Treasury bond yield is around 2.66% as of trading on Wednesday.

The single note was sold through private placement, according to the release, for a price of €100 million ($113 million). The sale was conducted by Goldman Sachs International Bank and Nomura International.

"This ultra-long maturity is a significant first for Ireland and represents a big vote of confidence in Ireland as a sovereign issuer," Frank O'Connor, NTMA's director of funding and debt management.

Century bonds aren't totally unprecedented as some private companies have issued the bonds. Governments such as Mexico have also issued the ultra-long duration bonds as well.

The current yield of 2.35% comes just 3 years after the country exited an international bailout agreement. In fact the yield is lower than the country's 10-year bond yield less than 2 years ago.

This is actually good news for Ireland, as yields are higher on long-term bonds when faith in the country's ability to repay is lower. So a low yield on a 100-year bond seems to signal faith in the government's economic stability, even if it might be driven by the ECB.