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Cost of borrowing up

The cost of borrowing has risen for the first time since the National Treasury Management Agency resumed bond auctions last year.

The NTMA sold €750m of 15-year debt at a yield of 2.2pc yesterday compared to a yield of just 1.6pc four months ago.

The rise in yields reflects trends elsewhere in Europe as the threat of eurozone deflation recedes. A recent sell-off in European bonds has spread across the word. It has pushed benchmark yields in most countries to their highest point so far this year and marked an abrupt turnaround in a long-running rally that pushed borrowing costs to record lows. That was also affected by oversupply in eurozone bonds. Spain and Italy have also sold bonds recently.