IRISH NINE-YEAR bond yields have fallen below 6 per cent for the first time since October 2010 – when the country entered a loan agreement with the EU/IMF.

Yields dropped seven basis points to 5.96 per cent this morning, marking a 22-month low for Ireland, reports Bloomberg.

The positive development comes as the National Treasury Management Agency (NTMA) prepares to raise up to €1 billion worth of ‘amortising’ bonds, which is hoped will increase the Government’s borrowing options and addressing shortfalls in the pension industry.

Positive sentiment across Europe has helped in driving down the cost of borrowing for Ireland, with both Spain and Italy managing to borrow at lower rates today, reports RTE.