The National Treasury Management Agency has bought €500m of Government bonds from the Central Bank and cancelled them.
This brings to €2 billion the total cancelled this year relating to a deal to ease the country's debt burden.
As part of a 2013 deal struck with the European Central Bank to stretch out the cost of liquidating the collapsed Anglo Irish Bank, the NTMA said it would slowly feed new bonds worth €25 billion into the market via the Central Bank.
Last year, the Central Bank sold the minimum €500m of bonds acquired during the financial crisis but, under pressure from the ECB, it has now disposed of €2 billion this year.
The Central Bank is obliged to sell at least €500m a year until 2018.