Now Ireland's Borrowing Costs Are Spiking And It's Being Blamed On Greece


Ireland just had to offer 20 basis points in yield on its debt, than a month ago:

Independent Ireland:

TAXPAYERS will have to pay more than €3m a year extra interest on money borrowed yesterday, compared with last month, as the Greek debt crisis sends interest rates higher.

The National Treasury Management Agency (NTMA) had to offer around 0.2pc more than in March when it auctioned €1.5bn in government bonds to banks and financial funds.

Bids for the bonds were more subdued, with three times as much funding being offered by investors, compared with more than four times last month.

Nevertheless, the sale was described as “solid” on a day when Greek interest rates hit new record highs and markets prepared for a rescue package and restructuring of Greek debt.

Either this is a matter of Greece concerns spilling over into other European debt markets, or it might have an Ireland-specific cause. Ireland’s one of the PIIGS after all, thus isn’t exactly a financial safe haven itself.

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