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Irish-German bond gap at new high

Money markets - Irish costs move above 7.2%
Money markets - Irish costs move above 7.2%

Ireland's cost of borrowing moved higher again today on bond markets.

The interest rate demanded by investors to lend money to Ireland for ten years was just over 7.22% this evening, up from just under 7% at the start of trading.

Reports said uncertainty over what measures the US Federal Reserve would decide on this week, together with weekend media reports warning about Ireland's budgetary position, affected borrowing costs for Ireland, Portugal and Greece.

The closely watched gap between Irish and German borrowing costs also hit a new high of just over 4.8 percentage points.