Irish Bond Spread, Swaps Jump to Record on Renewed Bank Concern
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Irish bonds led declines by the debt of so-called peripheral euro-region countries on renewed concern the nation’s banks may require further government aid.
The cost of protecting Irish government debt from default jumped to a record. Yields on the nation’s 10-year debt rose to the highest relative to similar-maturity benchmark German bunds since at least 1991, and the Portuguese-German yield spread was near the most on record. John Gormley, leader of Ireland’s Green Party and a member of the ruling coalition, said spreads would widen should Ireland consider renegotiating with Anglo Irish Bank Corp. bondholders, as suggested by the opposition.