Market falls as German bonds flop

THE ISEQ index fell 31.59 points to close at 2,511.77 yesterday.

Markets dropped as weak Chinese factory data fuelled further worries about the slowing global economy and a disastrous sale of German 10-year bonds sparked fears that the debt crisis was beginning to threaten theeurozone’s largest economy.

In the financial sector, the Department of Finance has indicated it is considering applying a subordinated liabilities order on Bank of Ireland’s junior bondholders. The order would writedown the value of the securities by up to 100% and would immediately generate up to €€350m of core tier 1 for the bank. Shares in the bank closed down 0.2c at 7.5c. AIB fell 0.6c to 6.1c. Irish Life & Permanent dipped 0.1c to 0.031c, while FBD remained unchanged at €6.35.