Ireland sold treasury bills for the second time this year today, and saw the cost of doing so more than halve to the same level as Italy as it continued to inch back into debt markets against a more favourable backdrop in Europe.

The National Treasury Management Agency sold €500 million worth of treasury bills due December 17 at a yield of 0.7 per cent, compared with a yield of 1.8 per cent on similar securities in July, it said on its website.

The bid-to-cover ratio was 3.03 times, with total bids of €1.52 billion.

Irish borrowing costs have fallen since European Union leaders on June 29 opened the door for the euro-region's rescue funds to directly recapitalize banks.

Ireland returned to the long-term bond markets in July for the first time in almost two years, selling €4.2 billion of new debt.

"This is another good result for the NTMA," said Eamonn Reilly, a trader with Dublin-based securities firm Davy.

Agencies