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Bond markets start to support Treasury

THE National Treasury Management Agency (NTMA) has had its borrowing costs on money it was lent two months ago slashed.

The move is a sign that the bond markets are warming to Ireland. (Pictured is John Corrigan, CEO of the National Treasury Managment Agency).

Yields on a range of bonds fell to two-year lows this week -- with financial experts believing Ireland will benefit greatly from the formation of the European Stability Mechanism.

A successful bond auction yesterday means the NTMA has raised nearly €14bn this year. The auction was over-subscribed by three times, with bids of more than €1.5bn placed.