BKIR.L Share News (BKIR)

Having reached around 9.25% on Thursday Irish 10-year bond yields have fallen back as Ireland is in talks with the EU about emergency funding.This was despite earlier denials from the Irish government, which had been saysing an EU rescue would not be needed. Proposals for the rescue package are expected to be finalised next week, possibly at a meeting in Brussels on Tuesday. The Irish market got the jitters when, earlier this week, German Chancellor Angela Merkel said taxpayers could not be left to bail out debt-ridden countries. The EU has pledged to support the Irish Republic if it is needed and Irish bond yields have fallen back to just below 8.5%. This is the first time Irish bond prices have risen in 14 days. In contrast, German bunds are falling in price with ten-year yields nearly seven basis points higher at 2.5%. This narrows the gap between German and Irish 10-year bonds but it remains nearly six percentage points. Shares in Bank of Ireland and Allied Irish Banks recovered on the day.