The National Treasury Management Agency has announced plans to raise between €1 billion and €1.5 billion in its next auction of government bonds next Tuesday.
The NTMA, which borrows money on behalf of the State, plans to auction 10-year bonds and four-year bonds.
The auction will be closely watched, as the interest rate demanded by investors to lend money to Ireland and other euro zone countries struggling with debt has climbed recently.
This evening, the yield on Irish 10-year bonds was 5.4%, almost three percentage points above the German equivalent.
Yesterday, Central Bank Governor Professor Patrick Honohan told the Daily Telegraph that the premium being demanded by investors to hold Irish 10-year bonds over German bonds was 'ridiculous' and a setback for the economy.
Reports suggest the European Central Bank may have intervened to buy Irish government bonds to ease investor concerns.
But the Central Bank would say only that the ECB's bond-buying programme was still in place, and it would not comment on specific actions taken under this programme.
