THE OVERNIGHT ANNOUNCEMENT of a second programme of quantitative easing (‘QE2′) in the United States has done little to help the cost of Irish government bonds. As investors look to paper from other more secure nations, the cost of ten-year Irish bonds has shattered its previous record, standing at 7.635% as of 9:35am. Yesterday the spread between Irish and German bonds hit 5% and it’s continued to rise since. It’ll be a long day.
# bond-markets - Yesterday’s News
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# bond-markets - Wednesday 10 November, 2010
The Central Bank governor says Ireland’s tactics have been perfect – and that the IMF, if needed, would change nothing.
Irish bonds continue to beat their own records, heading into a 12th consecutive day of weakening
A chief strategist at Goldman Sachs believes the best way of calming markets down is to announce a bailout.
Minister for Finance tells the BBC Ireland will return to the markets next year to raise funds.
# bond-markets - Tuesday 9 November, 2010
We’re well clear of 7.9% now, despite news that the European Central Bank has cranked up its purchasing.
# bond-markets - Monday 8 November, 2010
Reuters reports that senior Department of Finance advisers want the pension reserve to create new demand for Irish bonds.
Meanwhile, economist Morgan Kelly predicts another housing crash…
# bond-markets - Friday 5 November, 2010
The cost of Irish borrowing remains largely flat in spite of the government’s Budget announcements.
# bond-markets - Thursday 4 November, 2010
The American central bank announces it will buy back $600bn of outstanding US bonds to lift the cash supply.
# bond-markets - Wednesday 3 November, 2010
The price of government borrowing for Ireland is now over three times higher than it is for Germany.
Up, and up, and up…
# bond-markets - Tuesday 2 November, 2010
THE COST OF BORROWING for the Irish government closed at an all-time high today, finishing above 7.3% for the first time since Ireland joined the Euro in 1999. The interest rate demanded by the world’s investors closed at 7.304% – the highest it has ever been, and well higher than the Greek rate when it required its own bailout in April. Here’s why you should care about the bond market chaos.
Bad sign: purchasing insurance against an Irish bond default is more expensive today than it has ever been.
First Colm McCarthy, now Karl Whelan says the movements in bond markets leave Ireland on the brink of default.
# bond-markets - Monday 1 November, 2010
ON FOOT of the record cost of borrowing for the Irish state – which today closed at 7.141% – has seen the cost of insuring against an Irish default hit record levels once more. Earlier this afternoon the cost of an Irish ‘credit default swap’ hit 5% for just the second time – meaning that borrowers with €10m in Irish debt will have to pay €500,000 a year to insure themselves against the cost of a bailout. It means the world’s markets believe there to be a 28% chance that Ireland will fail to meet its repayment obligations in the next five years.
The cost of borrowing for Ireland goes over 7% again, as investors buy into Colm McCarthy’s fears of an IMF bailout.
# bond-markets - Thursday 28 October, 2010
The cost of Irish borrowing is more expensive than ever – and briefly exceeded the 7% ceiling for the first time.
# bond-markets - Wednesday 27 October, 2010
Anglo was borrowing up to €7.9bn to pay out on bonds – on the same day the government announced the cost of recapitalisation.
As the government announces massive budget adjustments, the cost of Irish borrowing lies just off its all-time peak.
# bond-markets - Thursday 21 October, 2010
The cost of government ten-year borrowing was under 6% on Tuesday. Today it closed above 6.5% again.
# bond-markets - Monday 18 October, 2010
The price of ten-year borrowing for the government falls below the 6% mark as investors applaud consensus.
# bond-markets - Wednesday 6 October, 2010
Agency worries about banking costs. Agency downgrades rating. Price of borrowing rises. Repeat ad nauseum.
# bond-markets - Tuesday 5 October, 2010
As Moody’s considers downgrading Ireland’s credit rating again, the cost of government borrowing goes back up.
# bond-markets - Saturday 2 October, 2010
Citi investors heckle, jeer and make chimp noises during conference call with Finance Minister Brian Lenihan.
# bond-markets - Thursday 30 September, 2010
The Taoiseach says we’re not borrowing because of its costs – while the NTMA had earlier said it was a precaution.
Despite the “final announcement”, markets still think there’s more than half a chance that Anglo will default…
The price of government borrowing – and the Irish-German spread – falls back, but AIB shares crater.
# bond-markets - Wednesday 29 September, 2010
The price of government borrowing remains close to its all time record despite Olli Rehn’s assurance about funding.
# bond-markets - Tuesday 28 September, 2010
It’s the same old story, really. The world’s markets freak out about the price of Anglo, and Europe has to help out.
# bond-markets - Monday 27 September, 2010
The government will give the final bill on Friday, trying to calm investors after yet another horrible day for Irish bonds.
A German paper says we were ready for a bailout – and the bond yields hit new records. Yes, again.
Euro under pressure after Moody downgrades Anglo debt. Meanwhile, rumours emerge of ECB plan to rescue Ireland.
# bond-markets - Friday 24 September, 2010
THE PRICE OF government borrowing over 10 years has soared once again, having fallen from a new all-time record earlier today. The price earlier struck 6.574%, a new all-time record, but dived to 6.457% – lower than this morning’s opening price – at 3pm. Within 20 minutes, however, the price shot back north to 6.525%, begging the question: what’s gotten the markets so riled?
The market price of 10-year Irish government debt reaches another record – but there’s no European intercession.
# bond-markets - Tuesday 21 September, 2010
The yields on four-year, eight-year and ten-year bonds are all staying calm after this morning’s auction of fresh debt.
Spain was also trying to raise cash today – it offloaded €1.757bn in 18-month treasury bills, with demand exceeding supply by a factor of 2.9, while 12-month bills totalling a whopping €5.28bn were sold at 1.908%, with demand 1.7 times the supply. The demand for both was down, however, with 12-month bid-to-cover previously at 2.5 while the 18-month was 3.9.