Expect more.
Ireland was the first European country to launch a century bond in late March. The country issued its first 100 year note at 2.35% yield. The issue was privately placed worth €100 million and was handled by Nomura and Goldman Sachs.
Today, European capital Belgium, issued its own century bond, maturing in 2116, at a yield of 2.3%. Again the issue size was €100 million privately placed by Goldman Sachs and Nomura.
This is a clear indication, there exists specific appetite for ultra-longer dated security from Europe and the buyer or buyers seem to be quite generous looking at the yield. So expect more centuries coming out of Europe.
Several central bankers have warned that they can see signs of inflation over the horizon but demand for longer dated securities with low yield being relentless.
Today, United Kingdom, chose to issue 50 year debt worth £4.75 billion and the bids the issuance have attracted stand enormous at £21 billion.
The material has been provided by InstaForex Company – www.instaforex.com