The National Treasury Management Agency has sold €1bn worth of Government bonds in an auction.
Demand was much stronger than in the previous auction last month.
The NTMA is trying to raise €25bn this year to fund the widening Budget deficit.
A 4% bond, which matures in 2014, raised €300m while a 4.4% 2019 bond raised €700m.
With the recent dramatic fall in tax receipts, these types of auctions are crucial in helping the State make ends meet.
The agency has already raised €12.3bn through a series of scheduled monthly bond sales.
Bonds are effectively IOUs written by the Government with an interest rate attached.
This morning's auction came as Finance Minister Brian Lenihan continues a tour of major European cities.
He has been meeting international investors in order to assure them of Ireland's long-term credit-worthiness.
He travelled to Frankfurt this morning where he met German fund managers and moved on to Milan earlier this afternoon.
Experts assisting the Government in these trips say they are vital in helping to secure the sale of bonds at a reasonable price for the State.
Govt will take necessary action, says Cowen
The Taoiseach has said the Government will continue to take whatever steps are necessary to get the economy back on track, despite what he described as 'sniping' from the Opposition.
Brian Cowen was responding to Fine Gael leader Enda Kenny, who asked if the Taoiseach would call a General Election if the people vote no confidence in the Government in the elections on 5 June.
Mr Kenny also asked the Taoiseach to consider Fine Gael's proposed alternative to the Government's plan to establish a National Asset Management Agency to take over property-based debt from the banks.
The Government's plan for dealing with the banking crisis would result in every family in the country being landed with a €45,000 mortgage, the Fine Gael leader said.
Mr Cowen said he did not agree with Fine Gael's plan, which he said would involve defaulting on debts and would increase the cost of borrowing.
Labour leader Eamon Gilmore accused the Government of 'dithering' over the NAMA plan, saying it 'doesn't have a clue' what it is doing.
Mr Cowen said the Government hoped to publish the legislation on NAMA before the summer recess of the Dáil.
The heads of that Bill are to go to Government next month.
