Irish borrowing costs fall on QE talk

Most eurozone bond yields fell yesterday, including the cost of borrowing for the Irish Government, after ECB policy makers hinted at their readiness to modify or expand their unprecedented stimulus programme should market turbulence warrant further action.

Spanish and Portuguese yields climbed, however, hurt by doubts over the political situation ahead of elections.

The Irish yield on the 10-year bond fell to 1.21%, building on the declines recorded last week after the US Federal Reserve left US interest rates unchanged, said Ryan McGrath, senior bond trader at Cantor Fitzgerald Ireland.