Ireland’s borrowing costs fall as confidence rises

IRELAND’S borrowing costs fell at an auction of €1.2 billion ($1.6bn) of six and eight-month bills, as efforts by the Government to cut its budget deficit helped boost investor sentiment.

The country sold €650 million of securities due January 14, 2011, at an average yield of 1.367%, the National Treasury Management Agency said. That compared with 1.565% at a July 8 auction of the same bills.

Ireland also issued €550m of securities due March 14, 2011, at an average yield of 1.8%, compared with 1.898% on July 8.