Eamon Gilmore (Dún Laoghaire, Labour)
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Question 96: To ask the Minister for Finance his views on the recent escalation of Irish sovereign borrowing costs; and if he will make a statement on the matter. [41634/10]

Brian Lenihan Jnr (Dublin West, Fianna Fail)
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The extreme volatility on euro sovereign bond markets in recent days has seen yields on Irish Government bonds rise significantly, along with those of other so-called peripheral countries. While yields in the secondary market are currently at an elevated level, it must be borne in mind that no new Government debt is being issued at these rates. The purpose of the end-September Banking Statements and the soon to be published Four-Year Budgetary Plan is to encourage market confidence by bringing greater clarity as regards the recapitalisation needs of the banks and the restoration of a sustainable budgetary position. The National Treasury Management Agency raised €1.5 billion in its most recent bond auction on the 21 September. This means the target of raising €20 billion from the bond markets in 2010 has been achieved. Allowing for cash balances, retail debt and long-term funding carried over from last year, the Exchequer is fully funded well into the first half of 2011. In light of this and in order to give the markets time to digest the end-September Statements on banking and the Four-Year Budgetary Plan, the NTMA decided not to proceed with the planned bond auctions for October and November 2010 and will return to the bond markets in the usual way in early 2011.