The NTMA will auction €1 billion in 10-year bonds today, its last significant fundraising in the first quarter. Irish government bonds have remained reasonably well supported during the recent market turbulence, though prices have drifted a bit lower and the yield on the new 2026 bond has edged up over 1 per cent.

It gained a little in price terms yesterday, as the markets calmed a bit, so the way should be clear for the NTMA this morning, though it will be interesting to see what interest rate the bonds are auctioned at.

Increasingly the evidence is that investors are again starting to differentiate between investments on the basis of underlying risk. Risk concerns had been pushed into the background in a desperate search to get a yield as interest rates hit rock bottom. This remains a factor, but nervousness is also having an impact. In the last few months, for example, political and economic uncertainty has seen Portugal’s 10-year bond rates rise from 2.5 per cent to 3.5 per cent.

In contrast, the slight widening of the gap between Irish and German bond yields in recent weeks may appear inconsequential, but it does suggest investors are keeping an eye on the general election.

Elsewhere, there are clearer signs of the new risk aversion. The price of borrowing instruments such as convertible notes (Cocos) and similar instruments sold by banks to raise borrowings have slid significantly. Many of these involve debt switching to equity in the case of repayment not being possible, so they are kind of hybrid investments. AIB bonds issued late last year, for example, are now trading 10 per cent and more below issue price, while Permanent TSB is trading around a third below its IPO price.

The underlying message is that Ireland is still rated highly on the markets, but that the massive influx of cash into anything and everything offering any kind of investment return may be over. Risk is now back on the menu as a key factor in investment decisions.