Lisbon Yes vote may cut cost of loans

MOODY’S Investor Service said the ratification of the Lisbon Treaty could help reduce the cost of Irish borrowing.

The prospects of cheaper debt for the state was forecast also by Danske Bank at a recent Dublin seminar. Five-year credit default swaps (CDS) on Irish government debt contracted to 130.5 basis points from 138.5 bps on Friday as investors became more positive on Ireland.

By late Friday 10-year Irish government bond yield spread over German Bunds narrowed by 6 basis points since the European settlement close on Friday to 159 bps, according to Reuters.