Irish bonds react to Moody’s Investors Service upgrade

Irish bonds outperformed its eurozone peers in the first trading day after Moody’s Investors Service upgraded Ireland’s debt pile and delivered a better-than-expected scorecard on the country’s economic outlook.

Ryan McGrath, senior bond trader at Cantor Fitzgerald Ireland, said there was “surprise” that the tone of the upbeat report downplayed the potential risk to the Irish economy if the UK were to vote next month to exit the EU.

Moody’s is scheduled to announce its next sovereign rating decision on Ireland in September, and hopes will now be raised that the ratings firm will further upgrade Irish debt at that time, Mr McGrath said.