EU support eases cost of bonds

THE cost of Irish bonds eased significantly yesterday, following reassurances from EU leaders that lenders would not suffer any losses on the monies lent to eurozone countries.

On Thursday the cost of Irish 10- year bonds soared to 9.25% – a new record – as investors feared they would suffer serious losses if Ireland defaulted on its debts.

Yields on Irish 10-year Government bonds fell from their record highs to 8.18% by mid-afternoon yesterday. The gap between Irish and German bond rates, which went to over 6% earlier in the week, fell almost 1% and eased back to 5.68%.