Economics Weekly by Lloyds TSB

Financial markets remain pre-occupied with developments in the euro-zone, where negotiations have been ongoing between the Irish government Decision time for Ireland

Financial markets remain pre-occupied with developments in the euro-zone, where negotiations have been ongoing between the Irish government, European Commission, ECB and IMF on new measures to support the Irish banks. While it is not a foregone conclusion that Ireland will choose to make use of this facility, recent movements in Irish government bonds suggest that markets anticipate such an outcome. Ireland’s 10-year bond yield spread over German bunds has narrowed from 580bp early last week.

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