Irish bond yields broadly lower

Irish bond yields were broadly lower this afternoon as results from count centres showed the EU fiscal treaty referendum has been passed.

Short-term bond yields edged lower, with one-year yields back under 5 per cent, at 4.88 per cent, while two-year yields fell by almost 0.6 per cent to 6.829 per cent. 

Longer-term bonds saw a decline of 0.41 per cent for the yield on the eight year bond, with the nine-year showing a fall of 0.61 per cent, to 7.38 and 7.3 per cent respectively.

Yields on safe-haven government bonds hit fresh record lows today after a weak US jobs report added to growing fears of a worldwide economic slowdown that on top of Spain's difficult finances sent investors scurrying for safety.

Wall Street opened lower and European shares extended losses after US job growth in May was the weakest in a year and growth figures for the prior two months were revised lower, suggesting a faltering US economic recovery. German Bund futures hit a record high of 146.89, up 86 ticks on the day, and yields on German 10-year bonds fell as low as 1.129 per cent.

Benchmark 10-year Treasury notes rose as much as 1-4/32 in price to yield 1.442 per cent, the lowest on records that date to the early 1800s, according to Reuters data.

"The hope for US investors had been that the US economy at least could continue its growth even as Europe was declining," said Rick Meckler, president of hedge fund LibertyView Capital Management LLC in New Jersey.

"The time has probably come to for some new government action in the US, Europe and China."

Additional reporting: Reuters