The chief executive of the National Treasury Management Agency, John Corrigan, has said it will consider postponing its planned auction of bonds next month if interest rates on Irish bonds remain at their current levels.
The rate demanded by investors to hold Irish bonds has increased sharply over the past week following the escalation of the Greek crisis.
Speaking on Prime Time, Mr Corrigan said: 'Obviously we'll have to look at where the market is in the run up to May 15. If, in the event they are still demanding the same sort of premium that they are today, we would have to seriously consider passing on it.'
Ireland had already raised 60% of its planned borrowing needs for this year. Existing cash reserves could see it cover all of the estimated €20 billion required.
Mr Corrigan also said he believed the current pricing in the bond market had moved into 'an irrational phase' but he also added that 'these things tend to last a lot longer than you think'.
