Improved sentiment helps lower bond yields
Irish 10-year bonds were trading at 4.47% yesterday, compared with 5.9% for 10-year Spanish bonds. There was a spike in Spanish yields following the news that its central bank said bad debts had risen to 10.7% of total loans.
It was reported over the weekend that US investment firm Franklin Templeton had increased its holding of Irish sovereign debt to over 10% of all outstanding longer-dated bonds. Moreover, the ratings agency Fitch said yesterday it had upgraded its outlook on Irish banks from negative to stable.
