Bond auction to test sentiment towards Ireland's debt

An auction of government bonds will test the market's sentiment towards Irish debt this morning.

The National Treasury Management Agency (NTMA) is expected to raise up to €1.5bn for the Exchequer.

Ten-year Government bonds moved to a new record high of 6.5% at one stage before falling back to 6.48% by the close of markets yesterday. The rate moved upwards again this morning, to 6.56%.

However senior dealer with National Irish Bank Eoin Callan said that today's auction was just part of a bigger picture.

"It's more the medium-term fiscal path that this country follows that's really important...if we're going to look after ourselves without having to go for outside help," he said.