The National Treasury Management Agency has successfully sold €500m worth of three-month treasury bills.

The yield was 0.7%, which compares to a yield of 1.8% on similar three-month bills sold in July.

Today's auction was oversubscribed, with bids of over €1.5bn placed.

July's auction was the first such offering since September 2010.

Minister for Finance Michael Noonan welcomed the news, saying: "This result builds upon the NTMA's return to markets this summer and once again highlights the improvement in market sentiment towards Ireland.

“It is clear that the markets are reacting very positively to the 29 June commitment and positive developments in Europe."

Taoiseach Enda Kenny said the auction was part of the process of rebuilding trust.