RTRS:EURO GOVT-Irish bond yields rise along with Spain's
(Reuters) - Irish bond yields fell as worries about Spain led to selling in lower-rated euro zone sovereign debt, while comments from Germany, the Netherlands and Finland added to the pressure.
Those countries issued a joint declaration on Tuesday that appeared to unravel much of what was agreed at the last European summit in June, when EU leaders paved the way for the direct recapitalisation of problem banks..
Debt issued by Irish and Spanish - both of whom have had great problems with their banking system - underperformed other peripheral debt.
The yield on the October 2020 Irish bond rose 17 basis on the day to 5.21 percent while Spanish 10-year yields rose above 6 percent and stood 30 basis points higher on the day.
"It's a risk off day but cracks (in the summit conclusions) are particularly negative for Spain and Ireland, so that's the extra kicker," one trader said.
