The National Treasury Management Agency has cancelled its planned bond auction for June due to the economy's strong fiscal performance so far this year and the lower Exchequer borrowing requirement estimate for 2022.

The Department of Finance has said it expects the budget deficit to narrow at a faster-than-expected rate to 0.8% of gross national income this year.

It also said last month that the impact of the war in Ukraine would slow rather than derail economic growth.

The NTMA said its planned bond auction on Thursday May 12 will go ahead, with two bonds to be offered in the auction.

It plans to raise between €1 billion and €1.25 billion through the sale of a 0.35% Treasury Bond which is due to mature in 2032 and a 2% Treasury Bond which will mature in 2045.

The NTMA has raised €4.5 billion on the bond market so far this year from a planned range of €10-14 billion.

This is down from the €18.5 billion raised in 2021 as the Government expects to spend far less battling the Covid-19 pandemic.

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On Friday, ratings agency Moody's upgraded its sovereign credit rating for Ireland from A2 to A1 with a positive outlook.

The new rating is the highest provided to Ireland by Moody's since 2010 and its first upgrade since 2017.

The agency said it had taken the decision because the Covid-19 pandemic and exposure to Russia's invasion of Ukraine have both demonstrated that Ireland's economic resilience has increased.