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BONDS

INVESTORS are putting their trust in Ireland's economic recovery as the cost of borrowing dipped below 9pc for the first time since February.

The yield on 10-year Government bonds fell by 13 basis points to 8.99pc. This statistic is considered the benchmark for national borrowing and Ireland is now steadily marking itself out as different to the other bailed-out European countries.

The cost of Greek borrowing hit a euro-era record yesterday -- the yield on 10-year bonds rose by 45 basis points to 18.34pc while Portuguese 10-year bond yields remain elevated at 11.18pc.







Positive

Today markets are awaiting Federal Reserve chairman Ben Bernanke speech about the economic future of the US.

However expectations are fading that he will announce additional market stimulus through asset purchases.

The Wall Street Journal has given a positive outlook for the Irish economy, stating that it is "growing".

The editorial outlines that gross domestic product expanded by 1.3pc in the first quarter over the quarter before, boosted by strong exports and the Government's target of 2pc GDP growth for the current year should be "reachable".

And it said that Ireland's recovery in times of austerity has led economists to question the theory that austerity hampers growth.

"After all, if Ireland can grow through such punishing fiscal retrenchments, surely other economies can as well," the WSJ said.


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