Cost for State to borrow sinks to almost zero on ‘Lagarde effect’

The cost for the Irish State for any long-term borrowing is fast approaching zero as markets reacted to the nomination of Christine Lagarde to head up the ECB.

Across Europe, government bond yields tumbled as the “surprise” nomination of the boss of the IMF to succeed Mario Draghi increased the chances the central bank would cut interest rates and increase stimulus for the slowing eurozone economy, Dermot O’Leary, chief economist at Goodbody said.