THE Government is to pull back from the markets cancelling plan to issue short term “bills” and putting any new bond deals on hold until early next year.
The surprise announcement goes against earlier plans to "re-engage" with investors before the end of the bailout.
In a statement the National Treasury Management Agency (NTMA), which manages the national debt said it has suspended any further borrowing “in view of its relatively strong funding.”
Irish Government bonds were stronger in the markets following the news.
The Government is sitting on a cash pile of more than €24bn, more than enough to finance outgoings into 2015.
“It’s a smart move by the NTMA,” said bond trader Ryan McGrath of Cantor Fitzgerald.
He said borrowing in the markets only to sit on the cash is expensive, and damages perceptions about how indebted Ireland is, because the standard measure of debt to the size of the economy does not take account of Government savings.