Ireland locked out of CP and MTN markets as investors wait and watch

Uncertainty over whether Ireland will be forced to apply for a bailout is weighing heavily on the short-term money markets across Europe. Dealers have been reporting extremely low levels of demand for Irish bank paper in recent weeks, and although the Irish sovereign, the Housing Finance Agency and the National Treasury Management Agency have all issued in the past fortnight, the outlook is bleak in terms of enquiry for Irish paper.