Irish bond yields fall below key 6% figure
The "yield" or interest rate that investors demand to hold long-term IOUs from the Irish government has dropped below 6% for the first time since October 2010.
The yield on nine-year Irish government bonds dropped to 5.96% yesterday, falling below the psychologically important 6% line for the first time in almost two years and to pre-bailout levels.
That rate - or borrowing cost - is the most closely watched measure of Ireland's credibility in the markets.
The falling borrowing costs is a sign that investors are happy to hold the IOUs and boosts the chances of making a full return to the markets when the bailout is complete at the end of next year.
The news comes after the National Treasury Management Agency, which manages the country's debt, said last night that it will issue new style "amortising" bonds, and after the state raised €5bn on the markets in July.