The spread on 10-year Irish bonds reached a euro-era high today, with yields also rising to record levels.
The spread that investors demand to hold Irish 10-year bonds instead of German bunds rose to 465 basis points, taking it 11 basis point above its previous euro-era high.
The yield on Irish sovereign debt stood at hit a new high of 712 basis points (7.125 per cent) shortly after 4pm.
Bond prices have spiked following the collapse of Portugal's budget talks, while Greece's tax revenue shortfalls have reignited fears that peripheral European states may struggle to cut deficits.
Investors have also expressed fears that severe frontloading of the State's €15 billion budget deficit reduction target could hinder economic growth next year.
On Thursday, Irish bond yields reached their previous new peak of above 706 basis points, 7.06 per cent, before easing to 682 points after the European Central Bank stepped in to buy Irish bonds.
The amount of bonds bought by the central bank under confidential deals is not understood to be high.
