Bonds boosted in wake of Moody’s debt outlook move

Ireland’s government bonds fell yesterday, outperforming all their eurozone counterparts after Moody’s Investors Service raised the outlook on the nation’s debt, citing stability in its access to financial markets.

The extra yield that investors demand for holding Irish 10-year securities instead of German bunds dropped to the least since May 2010. Germany’s government bonds fell as Angela Merkel searched for a third-term coalition partner after winning Sunday’s elections.

“The Moody’s change is only a change in outlook, they still have Ireland at sub-investment grade, but it is a positive development,” said Owen Callan, an analyst at Danske Bank in Dublin.