Concern for other eurozone nations reignited as bond yields rise to 8.44pc
IRELAND'S borrowing costs went back up again yesterday as talk of a potential bailout swirled around the financial markets.
The yield -- the interest rate charged -- on 10-year Irish bonds stood at 8.44pc yesterday afternoon. The rise was sharp and will reignite concerns for other countries in the eurozone who are still borrowing on the international markets.
Yields on Portuguese bonds also rose, coming close to 7pc, as it becomes the "next in line" for bailout speculation. After Ireland and Portugal, Spain is next most vulnerable.
Speaking at an investment conference in the IFSC, Andrew Currie, managing director at ratings agency Fitch, said that while the Irish debt crisis was threatening other vulnerable members of the euro, each was very different.
He said that despite Ireland's problems, it had an export-led economy and a political consensus that finances needed to be brought into line. These were positives, he said, although bank funding remained a problem.
He said Portugal was just as vulnerable because it needed to borrow from the international markets in the first quarter of next year.