Ireland earns reprieve after bold bond auction cancellation
Investors’ negative view of peripheral eurozone credits could be nearing an inflection point after Thursday’s relief rally. Ireland’s brave cancellation of its next two government bond auctions and Moody’s more benign than expected downgrade of Spain reversed the latest selling wave and left peripheral debt up on the week.
Positive news on Portugals budget deficit also contributed to the days performance.
"It is a very strong day for the European periphery," said Lars Humble, an executive director on Goldman Sachs syndicate desk. "Peripheral spreads are significantly tighter."
Ireland announced that it would not auction debt in October and
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