The National Treasury Management Agency has today completed an auction of Treasury Bills, selling the target amount of €500m.

The NTMA said that total bids received amounted to €1.822 billion - 3.6 times the amount on offer.

The three month bills were sold at an annualised interest rate, or yield, of 0.129% - the lowest level since the agency resumed auctions last July for the first time since the 2010 bailout.

That compares to a yield of 0.195% at the last such auction in April.

Commenting on today's auction, Danske Bank's Owen Callan, said the ''combination of increasingly positive investor sentiment towards Ireland, allied with the recent ECB rate cut and discussion over negative rates, continues to support Ireland’s short-term financing''.

Mr Owen said it now makes sense for the NTMA to begin looking at longer issuance of six-month and nine-month papers over the coming months.

''Although, the NTMA does not actually need any of this short-dated funding at this point, it would test out investor appetite,'' he added.