Irish bonds fell today and the yield on ten-year Irish bonds rose to 0.908 pc, up from 0.891 pc in early trading this morning after a divisive general election and inconclusive result threw Irish politics into disarray and created considerable political and economic uncertainty.
The nation faces into a period of political instability after Prime Minister Enda Kenny’s coalition lost its majority in a general election according to Bloomberg.
Kenny’s government suffered massive losses in Friday’s vote, leaving an unprecedented grand alliance with traditional rival Fianna Fail as the only prospect for stable government. Kenny and Fianna Fail’s leadership ruled out a coalition before the election, though both took a less definitive line once the inconclusive outcome became clear.
The yield on Ireland’s 10-year bonds has fallen below 1 percent from 14.2 percent at the height of the financial crisis in 2011. Still, the spread between benchmark bonds and German securities of a similar maturity has increased to 76 basis points from 44 basis points six weeks ago, as uncertainty mounted over the election.
By late Sunday in Dublin, 146 of the 158 seats had been filled. Kenny’s Fine Gael had 46 seats, Fianna Fail had 42, with Sinn Fein taking 22. The Labour Party had 6, down from 37 in 2011. Seventy-nine seats are needed for a majority.
Read more on Bloomberg here
LBMA Gold Prices
29 Feb: USD 1,234.15, EUR 1,131.46 and GBP 890.95 per ounce
26 Feb: USD 1,231.00, EUR 1117.58 and GBP 878.87 per ounce
25 Feb: USD 1,235.40, EUR 1,121.41 and GBP 887.10 per ounce
24 Feb: USD 1,232.25, EUR 1,122.33 and GBP 885.52 per ounce
23 Feb: USD 1,218.75, EUR 1,106.62 and GBP 863.43 per ounce
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