Irish Bonds Lead Peripheral Debt Lower on Bank Bailout Concern

Irish bonds plunged, leading losses by peripheral euro-area debt, on concern the region’s banks may need additional funding.

The drop pushed the yield on Irish two-year notes to the highest since Bloomberg began collecting the data in 2003 after Standard & Poor’s said the cost to bail out Anglo Irish Bank Corp. may exceed its previous estimate. The yield subsequently pared its rise on speculation central banks bought the debt. The difference in yield, or spread, between Portugal’s 10-year bonds and German bunds widened to a record.