The National Treasury Management Agency (NTMA) says Ireland has the ability to fund itself in the bond markets.

Speaking as it launched its annual report the chief executive of the agency John Corrigan said it has met its goal of having a year's cash in place to fund the State.

"Increased international investor confidence in Ireland has been reflected in the steep falls in Irish Government bond yields from their peak in the middle of 2011" he said.

"Ireland’s continued success in meeting fiscal targets is a key domestic factor in this while, externally, a number of supportive developments at a European level have also had a very significant impact".

But he also warned that "Ireland does remain vulnerable, however, to international developments as evidenced by the increased volatility in global bond markets over recent months, driven primarily by concerns around the future path of quantitative easing policies".

To successfully exit the international bailout Ireland must be able to show it can meet its borrowing needs.

The NTMA said it will consider further bond sales later on this year. It has raised €7.5 billion by selling government bonds so far this year.

Speaking at the launch Mr. Corrigan acknowledged that the markets would like a "precautionary" programme in place for when Ireland exits the bailout programme.