Investors jump at Austria 100 year but long-term inflation fears grow

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By Lewis McLellan
25 Jun 2020

Investors flooded the books for Austria’s latest foray into ultra-long debt, with more than €17bn of orders for a bond maturing in 2120 with a yield of only 88bp. But despite the clear appetite for duration, some are concerned that recent, unprecedented monetary stimulus will lead to inflation, writes Lewis McLellan.

It is difficult to think of a bigger vote of confidence in the longevity of low rates than buying a century bond with 88bp of yield, yet 308 investors were happy to do just that. The bond offered only 50bp of pick-up over 30 year paper.

Of course, many ...

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