Irish debt costs at two-month high
IRELAND'S cost of borrowing has risen to the highest level since the start of April as bond markets in general continue the weaker trend of recent weeks.
It comes as European Central Bank (ECB) president Mario Draghi claimed measures by his bank, such as massive bond-buying programmes, had been done to help the currency, not to make it cheaper for countries including Ireland to borrow.
The yield, or interest rate, that the State here would pay to borrow for 10 years closed at more than 4pc last night, for the first time since April 5.
The bond market has been weakening for weeks as investors ponder the implications that central banks, especially in the US, may ease off on some of the extraordinary measures taken to keep the global economy ticking over.
Mr Draghi claimed the ECB was only active in the bond market because it benefited the euro, not to help countries at risk of insolvency.
He was speaking before a landmark legal case gets under way at the German Constitutional Court to asses the legality of the ECB's outright monetary transactions bond-buying scheme.
"We will not intervene to generally ensure the solvency of a country," Mr Draghi said. (Additional reporting Reuters)