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Welcome back, Ireland!

July 5, 2012

Ireland has been able to successfully return to short-term bond markets in a first auction since its 2010 international bailout. It's widely viewed as a milestone in endeavors to regain market confidence.

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Fence around the Bank of Ireland in Dublin
Image: dapd

Bailed-out eurozone nation Ireland on Thursday returned to short-term bond markets, ending a close on two-year absence after being rescued from bankruptcy by fellow Europeans and the International Monetary Fund (IMF) in November 2010.

Ireland managed to raise 500 million euros ($625 million) for three-month maturity bonds. "The National Treasury Management Agency completed an auction of Irish Treasury Bills, selling the target amount of 500 million euros in the first such offing since September 2010," the NMTA confirmed in a statement.

As a sign of growing market confidence, the government received bids totaling 1.415 billion euros, that's 2.8 times the amount on offer as the bills sold at a yield of 1.80 percent.

Model student?

"We are encouraged by the strong demand, the competitive interest rate and the presence of significant international interest in the auction," NTMA Chief Executive John Corrigan said, adding that his country was aware it was only the first step towards full access to the capital markets.

Ireland, whose bills sold at lower interest rates than those of Spain, looks poised to run a number of additional short-term auctions before attempting a long-term issue towards the end of this year.

Unlike the rest of the eurozone bailout club, Ireland was able to post moderate growth last year and keeps looking like the only bailed-out nation capable of giving Europe a rare good story of sound recovery from the debt crisis.

hg/ipj  (Reuters, AFP)