I can’t really describe the trepidation of Tuesday, you see, so much hinged on Wednesday that I actually lost sleep over it. What was on Wednesday? The NTMA issuance of €4 billion in Irish Government Bonds.
The way it stood was this, the CDS (credit default swap) spread on Ireland was 400 basis points and that was almost 300 basis points in of a Bund spread (comparing ours v.s. ze Germans), and the auction was going to go one of two ways, either firstly, it would succeed, albeit at high margins, or secondly (and what had me worrying) was that it would fail, then Ireland would be seen as lacking creditworthiness and billions would flow out of the nation in an instant.