Markets positive over Moody’s upgrade

The interest rate on Government debt fell yesterday by roughly 0.2% as the markets reacted positively to the announcement on Friday night that Moody’s had upgraded Irish sovereign debt to investment grade.

The NTMA will begin a series of auctions over the next week or two to raise €4bn over the remainder of the year.

Donal O’Mahoney, global strategist at Davy Stockbrokers, said the way is now clear for a series of further upgrades on the basis of the ongoing adherence to the fiscal targets; the resumption of growth in the economy with the result that debt/GDP is declining; and, the continued stabilisation of the banking system.