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EURO GOVT-Irish bond yld curve inverts, first time since Jan
May 30, 2012 / 7:37 AM / 6 years ago

EURO GOVT-Irish bond yld curve inverts, first time since Jan

LONDON, May 30 (Reuters) - Two-year Irish borrowing costs rose above 10-year bond yields for the first time since January on Wednesday, signalling rising short-terms fears ahead of the country’s referendum on new EU fiscal rules on Thursday.

The two year borrowing cost rose 18 basis points on the day to 7.448 percent, above the 10-year yield of 7.435 percent, which was little changed on the day.

An inverted yield curve can indicate that investors see greater risks to the repayment of bonds in the short term rather than in the long run.

The curve was last inverted between October and early January when fears about the euro zone’s ability to withstand pressure on Spain and Italy drove investors to sell bonds issued by all the region’s more-risky states.

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