Irish bonds and euro trade nervously

Volatility continued to hit the Irish bond market and the euro, as investors waited nervously for news on whether Greece and its creditors would fall short in negotiations over its repayments to the IMF.

However, analysts said the euro was likely in the longer term to weaken against sterling, good news for Irish-based exporters who have benefited from the rise of sterling, which makes their goods and services sold into Britain more competitive.

Ryan McGrath, senior bond trader at Cantor Fitzgerald Ireland, said that though in absolute terms Irish 10-year yields have risen sharply they were keeping pace with core eurozone interest rates such as those of Germany and France.