Irish punt already pays off for queen's bankers
The bankers to the Queen of England have become the latest to give a vote of confidence to Irish government debt.
Coutts & Co specialises in wealth management and investment services for rich people. The Queen's bankers bought Irish government bonds last week after market volatility increased, according to Niamh Wylie, a money manager at the company.
The bank made the investment as the yield of return on Irish 10-year bonds climbed to 4.26pc on June 11, a negative move for the borrower but the best return for investors since March.
Rising volatility in the bond market means a "buying opportunity" for Coutts, Wylie said.
Since then the yields have dropped back down to 3.88pc on 10-year bonds, meaning Coutts is already sitting on a paper profit on its Irish punt.
After weakening through May and early June, Irish government bonds have been better bid over the past week ahead of an auction of €500m of so-called three-month "treasury bills" due to take place today.