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Borrowing costs hit historic low

The yield on Government bonds have plunged almost 90pc since the worst days of the debt crisis.

Sky-high borrowing costs pushed the Irish Government out of the bond market in 2010, forcing the State to turn to the EU and IMF for rescue loans.

At the height of the euro crisis in July 2011, the cost of borrowing for 10 years hit an all-time high of 13.8pc. It meant it would have been ruinously expensive for the Government to even attempt to borrow on the markets.

The yield, or borrowing cost, fell to less than 1.75pc a year for 10-year bonds - about 87pc below the peak. It is the lowest rate ever. Low cost debt is good news for Finance Minister Michael Noonan (inset), but in reality record low yields reflect investors' belief that the economy across the euro area is in trouble.