Thursday, September 20 14:18:15
The yield demanded by investors to hold Irish nine-year sovereign bonds dipped below 5pc for the first time since August of 2010 just before Ireland was forced in to a bailout, latest market data reveals.
This afternoon, the yields stood at 4.974pc.
Irish debt is now the second- best performing in the euro region this year, trailing only fellow bailout recipient Portugal.
However, today's data from the Central Statistics Office showing Irish GDP flatlined in the second quarter compared to the forecast 0.7pc growth is likely to dim prospects of the country emerging from the grips of the Troika, according to Michael Saunders, Citigroup's head of European economics in London.
"Ireland faces an almost impossible task to get back to fiscal balance," Saunders said. Visits to the country showed "life is tough, very tough and not getting that much better anytime soon," he said.
Saunders said a slower economic revival may eventually make Ireland's debt, which more than tripled during the past five years, unsustainable.