Market retreats on Italy bond rates

THE ISEQ index was back in the red yesterday, down 41.31 points at 2,681.21. Markets fell after Italy paid a record high yield of 6.47% in a bond auction, fuelling fears that the debt crisis is deepening.

In the US, there was some disappointment that, despite acknowledging the current strains in the financial markets, the Federal Reserve made no indication that further easing was imminent.

In the financial sector, Bank of Ireland slipped 0.4c to 8.2c. AIB fell 0.4c to 7.1c, while Irish Life & Permanent gained 0.5c to 3c.