Ireland has borrowed €1 billion this morning - at its lowest long-term interest rate ever.

The Department of Finance says the state will pay an annual interest rate of 2.967 per cent to repay the money in ten years.

Investors were willing to lend 2.9 billion euro - almost three times more than the NTMA was looking for.

It's the second time this year that high demand for Irish bonds has driven down the interest rate paid by the government.