The National Treasury Management Agency has swapped €3.529bn worth of bonds due in 2014 for new bonds due for repayment in 2015.
The swap effectively refinances more than a quarter of the bonds due for repayment in January 2014, immediately after the EU/IMF programme ends.
It is the first significant test of market sentiment toward Irish Government debt since the bailout deal in November 2010.
The new bonds were issued with a yield of 5.15%. Last July Irish three-year bonds hit a peak yield of 22.5%.
The NTMA has been encouraged by the sustained falls in the yield in Irish Government bonds, particularly shorter term debt.
Yesterday yields on Irish five-year bonds fell below 6%, compared with a yield of almost 18% last summer.
In advance of the switching offer, an NTMA spokesman said: "This exercise will help us smooth the maturity of the bond due in January 2014.
"The decision to undertake this now reflects substantial demand among investors for our short-dated paper and the resulting decline in yields on Irish paper recently."
NAMA to appoint receiver to some Treasury Holdings assets
Separately, NAMA has decided to appointed receivers to certain secured assets within Treasury Holdings and linked companies REO and Spencer Dock Development Corporation.
Lawyers for Treasury Holdings will seek the permission of the High Court tomorrow to challenge the appointment.
They were given permission this evening to bring the application at short notice and it will be heard by the President of the High Court, Mr Justice Nicholas Kearns, in the morning.
Receivers PWC and Ernst and Young would be appointed unless blocked by the courts.
The original value of the loans involved is €2bn, although NAMA would have paid less than this figure to buy the loans.
