Photo: kthypryn on flickr
The yield on Irish debt has blown out again, rising now to 6.125% as of 5:05 AM ET, according to the Irish Times.The move is a result of uncertainty over the Irish banking sector bailout that has seen its costs increase due to the ever expanding Anglo Irish Bank bailout.
Now, national papers in Ireland are running headlines like, “Sobering report by Barclays warns we may yet need IMF,” in response to yesterday’s Barclays report we highlighted here.
The country’s National Asset Management Agency (NAMA) is planning on a €1.5 billion bond auction on September 21.
That should increase pressure on the sovereign as the auction looms.
But the threat of an IMF bailout is what is most alarming to Irish citizens, largely because it might require even more strict austerity measures that would trim the spending of the Irish state and lead to more job cuts.