Irish bonds benefit from calm aftermath of Greek storm

Taking stock after a month of crisis, analysts said yesterday that most European bond yields, including Ireland’s, have weathered well as fears about the Greek exit abated, while the euro has weakened against sterling as the UK interest rates rise draws closer.

Greece yesterday effectively sealed the agreement it stuck with the troika by starting the process for the repaying a total €6.25bn to the ECB and the IMF. Greece is paying €4.2bn in principal and interest to the ECB due on Monday and €2.05bn to the IMF that has been in arrears since June 30, the officials said. It is also repaying a €500m loan to the Greek central bank.

The country secured €7.16bn in bridge financing from the European Financial Stability Mechanism last week — enough to see Athens through July — and the opening of negotiations with its lenders on a third bailout program.