Colm Keaveney (Galway East, Fianna Fail)
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237. To ask the Minister for Finance his views on whether there is a bubble in the sovereign bond market; his views on whether Irish sovereign bonds are currently overvalued; the risk assessment he has carried out in respect of any market correction to the current valuation of Irish sovereign bonds; and if he will make a statement on the matter. [4461/15]

Michael Noonan (Limerick City, Fine Gael)
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As the Deputy is aware bond market yields and their valuations are determined by market participants and not by the Irish authorities. Investors will continue to value Irish sovereign bonds based on Ireland's underlying economic and fiscal fundamentals and relative to its sovereign peers. Ireland is making good economic and fiscal progress after a number of difficult years and is now perceived by the market as a semi-core sovereign borrower rather than a peripheral.

As the issuer of Irish sovereign bonds, the NTMA constantly monitors and evaluates bond market developments. In recent months, prior to the European Central Bank's (ECB) announcement on 22 January 2015 of the expanded asset purchase programme, also referred to as quantitative easing, Irish Government bond yields declined steadily. It is reasonable to suggest that the expectation, on the part of financial market participants, of such an announcement by the ECB was a contributory factor in this decline.