Irish Bond Spreads Decrease

In a sign of increasing confidence in the state of the Irish economy, Ireland successfully sold 1.5 billion euros ($2 billion) of bonds in yesterday’s auction. The extra yield that investors demand to hold 10-year Irish debt over the benchmark German bunds, which exceeded 400 basis points for the first time yesterday, narrowed 21 basis points to 381 points after the auction.

Ireland sold 1 billion euros of 2018 securities at a yield of 6.023 percent, up from 5.088 percent in June, the National Treasury Management Agency in Dublin said. It sold 500 million euros of 2014 debt at an average yield of 4.767 percent, compared with 3.627 percent at an Aug. 17 auction.

Source: Bloomberg

This article is for general information purposes only. It is not investment advice or a solution to buy or sell securities. Opinions are the authors; not necessarily that of OANDA Corporation or any of its affiliates, subsidiaries, officers or directors. Leveraged trading is high risk and not suitable for all. You could lose all of your deposited funds.