Following the Portuguese debt issue which is said to have highlighted the persisting peripheral jitters, the demand by the premium investors of holding 10-year Irish Government bonds over the German Bund, is said to have hit a euro lifetime high on Wednesday.

Having cleared the house LCH, the Irish/German spread too was found to be under pressure. There was an increase in the margin, after the Clearnet hiked margin requirements for the Irish debt which sis aid to be requiring almost
15% of net exposure.

Nishay Patel, a bond strategist at Citi in London said "LCH is the most specific news to hit Ireland today but also the Portuguese bond auction appears to have been taken poorly by some people too".

Ever since the Irish opposition made a statement saying that it would not support the first of four austerity budgets next month, it has been seen that the Irish Government was battling to prove that fact that it did not require a Greek-style bailout.

However the Irish bonds are said to have tumbled for a 10th consecutive day. Peter Schaffrik, Head of European rates strategy at Royal Bank of Canada Europe Ltd. in London said that just like Portugal, Irish debts too was trading poorly.