Ireland Market Confidence Increases as Spread Narrows

Ireland sold 1.5 billion euros ($2 billion) of bonds, easing concern that the country may need to be rescued by the European Union.

The extra yield that investors demand to hold 10-year Irish debt over German bunds, which exceeded 400 basis points for the first time yesterday, narrowed 18 basis points to 384 basis points after the auction. Ireland sold 1 billion euros of securities due October 2018 at a yield of 6.023 percent, up from 5.088 percent in June, the National Treasury Management Agency in Dublin said. It sold 500 million euros of bonds maturing in January 2014 at an average yield of 4.767 percent, compared with 3.627 percent at an Aug. 17 auction.