Markets expected to perform well after Draghi comments

European markets are expected to perform well this morning after ECB Chief Mario Draghi indicated he would do what it takes to save the euro.

Mr Draghi's comments have been seen as an indication that the European Central Bank will buy up Spanish bonds, which have hit an unsustainable rate of 7%, which is the level at which Ireland had to seek a bailout.

His comments come ahead of an ECB decision on interest rates next week, at which Draghi could announce a capping of rising bond yields.

His remarks yesterday settled European markets who are still not convinced that leaders have successfully dealt with the sovereign crisis.

Meanwhile, there has been a broad welcome for the news that Ireland has begun its slow return to the markets.

Yesterday, the NTMA managed to borrow long term money at an interest rate of less than 6%.

Finance Minister Michael Noonan said it was a vindication of the Government's policies, and of our passing of the Treaty in last May's referendum.

Speaking at the MacGill Summer School in Glenties last night, Department of Finance Secretary General John Moran said the achievement had been a long time coming.

"We're been at this for a year, trying to rebuild stability," he said "This is a vote of confidence in Ireland's efforts."

He said the interest rates were still too high to be sustainable, but that work would continue to reduce them.