US firms head for 30 years as Treasury rally brings windfall

By David Rothnie
08 May 2014

US bond specialists predicted many things for 2014, but few expected a rally in Treasuries. Yet this week the 10 year Treasury yield fell to 2.55%, making borrowing conditions even more attractive for high grade companies.

Issuers such as Xerox, Celgene and Caterpillar enjoyed big demand this week and tight pricing, as they took advantage of the rally to extend their debt maturities as investors flocked to long-dated deals.

Many market players have been caught out by the rally. The 10 year US Treasury ...

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