Irish 10-year bonds were little changed relative to benchmark German bunds as the government said it’s in talks with European officials about “market conditions.”
Greek bonds slipped before Eurostat announces revised 2009 deficit figures today.
The spread between 10-year Irish government bonds and the benchmark German bund narrowed by almost 5 basis points to test 560 basis points on Monday morning, according to TradeTheNews.com. The euro fell to buy $1.363, from 1.358 late Friday in New York.
German bund yields rose two basis points to 2.54 percent, while the yield on the U.S. 10-year Treasury climbed four basis points to 2.83 percent, following a 16 basis points advance at the end of last week.
The euro weakened 0.5 percent to $1.3628, near the lowest level since Sept. 30, and was little changed at 112.99 yen.
The euro region posted a 1 billion-euro trade surplus in September, compared with a deficit of 1.4 billion euros a month earlier, according to the median of three economist estimates before a report today.
Spreads on Irish government debt narrowed as investors were encouraged by reports that Ireland was preparing to seek emergency funding to help pay its international debts.
European officials are meanwhile reportedly encouraging Ireland to accept a bailout via the 750-billion euro European Financial Stability Facility fund so that the market can regain confidence in its solvency.
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Disclosure: "No Positions"