Bloomberg News

Irish Bill Sale Marks End of Drought as Spain Yields Rise

July 09, 2012

Irish Prime Minister Enda Kenny

Enda Kenny, Ireland's prime minister. Photographer: Nelson Ching/Bloomberg

Irish lawmaker Thomas Pringle said he “retains the option” of appealing a High Court ruling in Dublin paving the way for the ratification of domestic legislation on the European Stability Mechanism.

Pringle, who challenged the constitutionality of the laws, said he may appeal to the country’s Supreme Court. He said he would await the written judgement and details of Judge Mary Laffoy’s comment in court that she will refer one outstanding question on the case to European courts in Luxembourg.

“It’s only half time,” Pringle told reporters outside the courts complex in Dublin.

European leaders moved to create the ESM, which will have firepower of about 500 billion euros ($615 billion), to combat the escalating euro-region debt crisis. The rescue fund needs to be ratified by all 17 members of the region before it can take effect.

“The establishment of the ESM treaty at the earliest possible date is something that this government has negotiated hard to achieve,” Irish Finance Minister Michael Noonan said. “This will serve as a positive backdrop as we look to build upon the positive return to the T-Bills market” last week “and return to bond markets next year.”

The National Treasury Management Agency on July 5 sold 500 million euros ($625 million) of bills due in October at a yield of 1.80 percent, the first auction since September 2010.

The yield on Ireland’s 5 percent security due in October 2020 rose 1 basis point to 6.29 percent today. The rate was at 7.11 percent on June 28, and exceeded 14 percent about a year ago.

-- Editors: Dara Doyle, Tony Aarons

To contact the reporter on this story: Joe Brennan in Dublin at jbrennan29@bloomberg.net

To contact the editor responsible for this story: Edward Evans at eevans3@bloomberg.net


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