Italy, 50 year bond issued with 2.85% yield finds large demand

catch22

Don't know about other folks, but I don't care to buy a 50 year bond at this time. As an investor who has invested in a variety of bond types over the years, and currently does have exposure to U.S. corporate bonds; I won't be purchasing any of the country or corporate 50 year bonds that have been issued during the past few years.
Apparently, I don't understand bond investing as much as I have presumed; or there is a greater fool process in place for ultra long term bonds.
The below link is a broad search list.

https://www.google.com/#q=50+year+bond+rates&tbm=nws

Sven

At least it is on the positive territory (for 50 years!). Some German and Japanese bonds have negative yields. This is the direct consequence of low/no yield world we live in, and it forces the income investors to take on more risk that they normally tread lightly - emerging market bonds, high yield bonds, floating rate bonds, REITs, and dividend paying stocks.

DanHardy

catch22 said:

a greater fool process in place

That's it.

While I think we will have low rates for about 5+ years, all bets are off after that.

The cause of the inflation after that? My guess is that gov't spending will come home to roost as investors lose confidence in gov't financial management - debt and spending. Then the serious talk of a VAT will begin.

When did this all start - blame JFK/LBJ for Vietnam/Great Society, forcing Nixon into canceling Bretton Woods.

hank

Why buy a 50 year when you can get a 100? Obviously, Mexico's raising $$ to pay for that wall.
http://www.bloomberg.com/news/articles/2015-04-08/mexico-to-sell-longest-dated-euro-bond-with-100-year-offering