Irish and German bond gap widens

THE ISEQ held up yesterday, down by less than 0.1%, despite yields between long-term Irish bonds and their German equivalents widening further, to their biggest gap for nearly 20 years.

The Irish banking stocks did, however, have a contrasting day. Bank of Ireland fell nearly 2% to 74c, while AIB was up by 1.3%, at 77c.

The bank’s inching upwards coincided with the news that the Polish competition authority said a home-based buyer for its stake in Bank Zachodni would not be blocked, amidst speculation Spanish group Santander is closing in on a firm bid for the asset.