Irish bond yields plunge after Moody's upgrade

|By:, SA News Editor

Yields on Irish five-year bonds drop 17 bps to 1.63% after Moody's increased the country's debt rating to investment-grade status of Baa3/P-3 from Ba1/NP on Friday.

Moody's, which also gave Ireland a positive outlook, cited two main reasons for its action: Ireland's growth potential, which should bring down debt ratios, and the country's exit from its international bailout.

At one point, Ireland's bond yield was below that for U.S. five-year paper.