IT’S THE SAME old story almost every day, now, isn’t it?

The cost of borrowing for the Irish government is just off its all-time high this morning, with the government having to pay 7.051% in annual interest every year, as of noon today.

That rate was up by 0.133% – a significant amount – on the morning’s closing price, meaning a relative increase of 1.92%.

The increase in Irish prices has driven the spread between the cost of borrowing for the Irish and German governments to a new record of 4.58%, or 458 ‘basis points’.

By comparison, on October 18 – just two weeks ago today – that spread had fallen to 3.62%.

Eight-year bonds also broke a significant ceiling – of 6.5% – to stand at 6.554%, while six-year bonds stood at 5.988%, also an all-time record, and just short of a major 6% landmark.

The Financial Times’ Alphaville blog believes the investor panic is as a result of the influential opinion of UCD economist Colm McCarthy, who on Sunday wrote that the “game was up” and that the prospect of requiring a budget bailout from the IMF was “at our door”.