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Bond yield not seen since 1991

THE spread between Irish and German bonds has increased to levels not seen since 1991.

Despite last week's successful €600m sale of Irish short-term debt, the yield spread between Irish and German 10-year bonds remained under pressure, which ultimately could make it more expensive for Ireland to borrow on the international market.

The yield of Irish 10-year bonds remains below last May's highs, at 5.7pc but the differential, or spread, between Irish and German bonds has continued to widen, reaching 352 basis points yesterday.