Europe’s “Massively Over-Subscribed” Long-Dated Bond Bloodbath
The acute pain from the sharp rise in interest rates on the heels of the US presidential election upset is broadly felt across the fixed income markets this past two weeks. Take, for example, the ultra-long duration European sovereign bonds, which yield practically zero interest but were nonetheless bought with both hands and feet by investors earlier, are really taking a bath:
Belgian ‘Century’ bonds are down 30% in 3 months.
Ireland’s ‘Century bonds’ are down 40% in 2 months.
Austria’s 70-year bond issued 3 weeks ago now down 15%…..
And these are supposed to be safe and non-volatile securities!Full article: http://www.zerohedge.com/news/2016-11-14/europes-massively-over-subscribed-long-dated-bond-bloodbath