Market fears push cost of Irish bonds to record high

THE yield on 10-year Irish bonds touched new highs yesterday as markets worried about the nation’s ability to cope with its surging debt that includes €50 billion in a bailout of the Irish banks.

International reports said renewed focus on peripheral euro states had increased investor worries about debt defaults in some countries, including Ireland.

The mood surrounding the national finances darkened further as subordinated bondholders in Anglo sent out a clear signal they would block moves on a debt buyback by the bank that would leave them with a loss of over €1.3bn on their investments.