Bond markets 'effectively closed to Ireland'
As Ireland's cost of borrowing continues to soar, an analyst has today warned that the bond markets are now effectively closed to Ireland.
The interest being sought on 10-year Irish bonds today is creeping towards 8%.
Although the country is not currently borrowing money, analyst Paul Somerville says that the increasing rate displays a lack of confidence in the markets that Ireland will be able to take the necessary action to deal with its deficit.
“Ireland has been shut out of the bond markets now,” said Somerville.
“The bond markets have lost absolute, all faith in the Irish Government.
“Basically, if the rates are at this level when we try to go back to the markets some time at the end of January/February, we will be going straight into the (EU) stability fund.
“It has gotten that serious today.”
