United Mexican States on Tuesday issued a 100yr bond maturing in Oct 2110. The bond priced at $94.28 to yield 6.1%, with a 235bp spread to 30yr US Treasury. In today’s trading, the price increased $5 to above $99.
Seriously?
This shows the impact of global QE, massive inflows into taxable bond funds and low rates - the reach for yield! Bond investing will soon be a sport in the X games.
This is my effort to help fit the pieces together to get a better picture of the capital markets.
“It ain’t what you don’t know that gets you into trouble. It’s what you know for sure that just ain’t so.”
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