Tags: Irish | Debt | Costs | Rise | Financing | Fears

Irish Debt Costs Rise on Financing Fears

Monday, 08 Nov 2010 07:30 AM

The cost of protecting government debt against default in Ireland and Spain rose on Monday on fears about Ireland's ability to fund its budget.

Five-year credit default swaps (CDs) on Irish government debt rose by 29 basis points since the New York close on Friday to 607 bps, while the Spanish equivalent rose by 11 bps to 261 bps, according to CDS monitor CMA.

It means the cost rises to 607,000 euros to protect 10 million euros-worth of Irish government bonds.

A report in the Sunday Tribune newspaper, citing an unnamed "senior market player," said the government's bet that 6 billion euros in cuts will help Ireland return to the debt markets in 2011 will be hard to implement, and it will be unable to sell any bonds next year.

Meanwhile, Greek CDS narrowed by five bps to 861 bps, after the country's governing party gained sufficient support in weekend local elections to avert a snap national election and instead press on with austerity measures.

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The cost of protecting government debt against default in Ireland and Spain rose on Monday on fears about Ireland's ability to fund its budget. Five-year credit default swaps (CDs) on Irish government debt rose by 29 basis points since the New York close on Friday to 607...
Irish,Debt,Costs,Rise,Financing,Fears
165
2010-30-08
Monday, 08 Nov 2010 07:30 AM
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