Thursday, November 4, 2010

ECB Buys Irish Debt as Bonds Tumble an Eighth Day, Traders Say - BusinessWeek

November 04, 2010, 7:24 AM EDT

By Anchalee Worrachate and Keith Jenkins

Nov. 4 (Bloomberg) -- The European Central Bank bought Irish government bonds today, according to three traders with knowledge of the transactions.

The ECB purchased 10-year bonds, the traders said under condition of anonymity because the deals are confidential. A central bank spokesman in Frankfurt declined to comment.

Irish 10-year bonds slid for an eighth day, the longest run of declines since January 2009. The yield on the securities jumped 23 basis points to 7.79 percent as of 10:52 a.m. in London. The extra yield investors demand to hold the debt instead of German bunds rose to a record 520 basis points.

--With assistance from Matthew Brown in London and Jana Randow in Frankfurt. Editors: Daniel Tilles, Peter Branton

To contact the reporter on this story: Anchalee Worrachate in London at aworrachate@bloomberg.net

To contact the editor responsible for this story: Daniel Tilles at dtilles@bloomberg.net

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