Ireland’s sovereign debt is continuing to come under stress today. The yield on the country’s 10-year sovereign debt has risen to 7.6% this morning.
The combination of things hammering Ireland right now is as follows:
- Worried over the country’s budget, the sincerity of cuts, and its ability to grow tax revenue
- Concerns over the banking sector bailout, which is seeing its costs continue to rise
- And the European Union’s new plan for crises, in which investors in bonds will take a hit
As a result, CDS is also spiking, now up to 512 bps.
But check out the movements on the 10-year yield, this a 6 month chart, now trading at 7.6%: