More market reaction to Ireland’s emergency budget

After the precipitous fall noted earlier Irish bank shares recovered somewhat by the end of the day with Bank of Ireland at a reported 86 cent, down 10%, and AIB at €1.19, down 7 per cent. Meanwhile, although the Irish Times reported that

The 10-year Irish/Bund yield spread, a crucial measure of the market’s assessment of the quality of Irish public debt, was broadly steady yesterday afternoon in a range of 205-207 basis points. This was marginally up on the 202 spread seen earlier yesterday.

The Guardian has noted that today

There was also turmoil in the Irish bond market, however, where dealers sold Irish government bonds heavily. That in turn pushed the yield on them to a hefty 2.18 percentage point premium to benchmark German bonds. That so-called “spread” represents growing fears that Ireland could follow Iceland into financial collapse.

Adds More from the Guardian and from Bloomberg.