Irish Bonds Lead Rally in Euro-Area Debt After Moody’s Upgrade

Ireland’s bonds advanced for a fourth day after Moody’s Investors Service raised the nation’s credit rating back to investment grade, boosting confidence in the securities of the euro area’s most indebted nations.

The nation’s 10-year yields fell by the most since September 2011 after Moody’s increased the rating to Baa3 with a positive outlook on Jan. 17. The decision means all three of the main credit rating companies now rank Ireland as investment grade. Spain’s bonds also rallied, with 10-year yields dropping to the lowest since 2006, while similar-maturity Italian yields fell to the least since May. Germany’s benchmark bund yields dropped to the lowest in six weeks.