Thomas Molloy: Market's optimism must be tempered with reality
WHICH country's bonds are giving the best returns these days? The surprising answer is Ireland. Bloomberg, the news organisation created to monitor the bond markets, reported yesterday that Irish bonds handed investors a 14pc gain in the past three months -- the highest among 26 countries monitored by the European Federation of Financial Analysts Societies.
For the 450,000 who are on the dole and for most other citizens struggling to make ends meet, the yield on the 10-year Irish bond is probably far down their list of concerns but the arcane jargon on the markets do provide genuine reasons to be cheerful.
The cost of borrowing is falling quite rapidly for Ireland at a time when the cost for Greece and Portugal is still rising. The reason for this is simple enough: people are beginning to believe in Ireland once again.