Irish borrowing costs hit another record low today in anticipation of further stimulus measures by the European Central Bank.
The yield on the State’s benchmark 10-year bonds dropped to 1.858 per cent at one stage this morning, the lowest since Bloomberg started tracking the bond data in 1991.
This kept the Ireland’s borrowing costs below that of the US and UK.
Yields on Irish debt have fallen steadily since mid-2011, at the height of the euro zone debt crisis, when 10-year yields topped 14 per cent.
The demand for Irish bonds was part of a European-wide rally, which saw rates on Italian and Spanish 10-year securities dropping to record lows.
The bonds extended a month-long surge in bonds that has been driven by the ECB’s stimulus measures to revive the economy and accelerate consumer-price increases.
Last week, Fitch became the second major agency to restore an A-grade to the Irish economy in the wake of the financial crisis.