Irish Borrowing Costs Fall from Record High

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Irish borrowing costs fell from a record high as concerns about the country's fiscal problems eased.

Ireland sold a total of 1.5 billion euros ($2 billion) of bonds Tuesday, paying a yield of 6.02% on 8-year bonds and 4.77% on 4-year bonds, The Associated Press reported.

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The country's borrowing costs hit a record high of 6.56% on Monday, as investors fretted about the cost of bank bailouts and the country's budget deficit, which is the largest in the euro zone.

There has also been speculation that the country may have to turn to the European Union or the International Monetary Fund to help resolve its fiscal issues.

Willem Buiter, chief economist with Citigroup, told the AP that the premium investors are demanding to hold Irish bonds over German bonds is "ridiculous" and that market fears about Ireland's fiscal position are irrational.
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