Sunday, 16 September 2012

Cost of borrowing for Ireland falls




THE COST OF BORROWING for the Irish government on the bond markets has fallen today, as investors respond positively to the German constitutional court’s rejection of a complaint which would have killed off a permanent Eurozone bailout fund.
The yield on Irish bonds on the markets – i.e. the interest rate that investors expect to receive in exchange for lending money – has fallen on second-hand bond markets today, just a day before Ireland goes back to the markets to borrow on a short-term basis.
The cost of taking out a 9-year loan stood at 5.44 per cent at 2:45pm this afternoon – the first time since August 2010 that Ireland would have been able to borrow money quite at a rate below 5.5 per cent.

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