Surge in government bond price a timely boost

A SURGE in Ireland’s 10-year government bond price over the past month shows it is decoupling from Portugal and Greece, reinforcing speculation it can be rehabilitated on world markets faster than its fellow eurozone bailout recipients.

The Irish 10-year bond price has risen from as low as 52 cent in the euro in mid-July to a 7-month high of 76.5 on Friday — a surge of almost 50% in just six weeks and suggesting rising hopes of full repayment among creditors.

Put another way, 10-year borrowing rates for the Irish government have fallen under 9% for the first time since February and are down from a high of 15% last month.