From the Financial Times
Ireland’s bond yields leap on default fears, By David Oakley, Published: March 23 2011
Ireland saw a leap in its cost of borrowing on Wednesday as peripheral eurozone economies came under pressure because of worries over the risk of sovereign bond defaults.Dublin has come under pressure because of fears Germany will refuse to back down over its demands that Ireland must increase corporation tax rates in return for lower interest rate costs for bail-out loans. Irish two-year bond yields, which have an inverse relationship with prices, leapt nearly 1 percentage point to 10.7 per cent at one stage as European Union heads of state gather in Brussels for a summit on Thursday and Friday. (link to full article)
