Irish hopes of return to markets

The bond markets have reacted favourably to the last EU summit and Monday’s meeting of eurozone finance ministers.

Irish bond yields are hovering around the 6.7% level, which represents a significant narrowing of yields on government debt over the past six months and augurs well for a return to the bond market towards the end of this year or the beginning of 2013.

Last week the Government successfully issued €500m three-month Treasury Bills, but Lorcan Kelly, chief european strategist with investment advisory firm Trend Macro, says the Government should test the market for much longer dated debt.