Ireland's cost of borrowing drops to record low

Spain also leading the charge in widespread Eurozone slide...

Yields on Irish 10-year government bonds fell to a record low of 0.363 % on Tuesday, owing to peripheral bonds rallying across the Eurozone since the Brexit vote.

Benchmark Irish bonds due 2026 dropped two basis points on the back of planned monetary easing in the UK, according to the Irish Times.

The yields on those Irish bonds have now fallen from 0.84% in the week before the UK's referendum in June.

Peripheral bond yields were sliding across Europe, with Spain also hitting an all-time low for its benchmark 10-year bonds. It highlights how the search for returns is outweighing worries surrounding the political uncertainty that has rumbled on in Spain for over eight months now.

Yields there have dropped as much as 73 basis points since the country held fresh – but ultimately similarly indecisive – parliamentary elections on June 25th.

Jaime Costero, interest rates strategist at BBVA, said:

"All peripheral bonds are rallying because of a hunt for yield, but Portugese bonds are scarce and Italy has issues around the banking sector. So Spain is benefiting."