Irish borrowing costs at new high
Published 28/10/2010 | 14:01
The interest rate on Ireland's debt has reached a new euro-era high as investors sell Irish bonds amid scepticism that the country can meet EU deadlines for taming its deficit.
The yield on the country's 10-year bonds rose above 7pc on Thursday for the first time since the euro's launch 11 years ago.
It broke the previous high of 6.9pc reached last month as doubts grew over Ireland's ability to reverse its Europe-leading deficit.
Analysts have said this week's resumed rise in Irish bond yields - the price investors require to buy the treasuries - reflects concerns over the Government's plan unveiled on Tuesday to slash €15bn from its deficits by 2014.
The Government hopes to trim its 2014 deficit to 3pc of GDP as the EU requires.