August 7, 2019 / 12:50 PM / 11 days ago

Soaring prices in super-long euro bonds ape crypto, tech surges

Traders work on the floor at the New York Stock Exchange (NYSE) in New York, U.S., June 3, 2019. REUTERS/Brendan McDermid

LONDON (Reuters) - If you thought exponential price surges and bubble-like vertical chart lines were only the stuff of cryptocurrencies or tech stocks, think again. Euro zone government bonds with super-long maturities between 50 and 100 years are surging.

These long-dated bonds reflect recession concerns, a collapse of inflation expectations, negative interest rates and expectations of ever more central bank bond buying. But for speculators, the price gains this year are eye-watering.

Austria’s 100-year bond has seen a 63% rise since the start of this year. The country’s 70-year bond has rallied nearly 50%.

Other long-dated debt in the euro zone, such as Belgium’s 50-year bond, has rallied 45%. Slovakian and French equivalents have gained 44.7% and 41.3% respectively.

Reporting by Ritvik Carvalho; editing by Larry King

0 : 0
  • narrow-browser-and-phone
  • medium-browser-and-portrait-tablet
  • landscape-tablet
  • medium-wide-browser
  • wide-browser-and-larger
  • medium-browser-and-landscape-tablet
  • medium-wide-browser-and-larger
  • above-phone
  • portrait-tablet-and-above
  • above-portrait-tablet
  • landscape-tablet-and-above
  • landscape-tablet-and-medium-wide-browser
  • portrait-tablet-and-below
  • landscape-tablet-and-below