Goodbye Ireland. Ireland 10 Year Treasuries Break 8%
"At above 8%, it now makes more sense for the country to tap the European bailout fund than to keep funding itself on the market. Granted, Ireland won't be going to the market until early next year, but obviously the government is desperately eager to get the yield down before it mas to make that decision."
DUBLINâWith doubts swirling about the solvency of the Irish state in early September, Finance Minister Brian Lenihan summoned a dozen senior government and bank officials to a conference room nicknamed the "torture chamber," a nod to its history as a venue for painful meetings.
For two years, Ireland had poured money on a raging banking crisis, to no avail. Each estimate of the rising price of rescuing Ireland's banks turned out too low. Mr. Lenihan needed to halt the drip-drip of bad news that was leading his country to ruin. "I want a final figure ASAP," he told the group.
Two weeks later, the estimate came in: Up to â¬50 billionânearly $50,000 for every household in the Emerald Isle.
But now, investors are betting the bill could be higher still and could reignite Europe's sovereign-debt crisis. The unpopular government is bracing for collapse, and on Tuesday, Irish government bonds continued a week-long slide to a fresh record low.
http://online.wsj.com/article/SB10001424052748704506404575592360334457040.html
"At above 8%, it now makes more sense for the country to tap the European bailout fund than to keep funding itself on the market. Granted, Ireland won't be going to the market until early next year, but obviously the government is desperately eager to get the yield down before it mas to make that decision."
DUBLINâWith doubts swirling about the solvency of the Irish state in early September, Finance Minister Brian Lenihan summoned a dozen senior government and bank officials to a conference room nicknamed the "torture chamber," a nod to its history as a venue for painful meetings.
For two years, Ireland had poured money on a raging banking crisis, to no avail. Each estimate of the rising price of rescuing Ireland's banks turned out too low. Mr. Lenihan needed to halt the drip-drip of bad news that was leading his country to ruin. "I want a final figure ASAP," he told the group.
Two weeks later, the estimate came in: Up to â¬50 billionânearly $50,000 for every household in the Emerald Isle.
But now, investors are betting the bill could be higher still and could reignite Europe's sovereign-debt crisis. The unpopular government is bracing for collapse, and on Tuesday, Irish government bonds continued a week-long slide to a fresh record low.
http://online.wsj.com/article/SB10001424052748704506404575592360334457040.html
