Chart of the week: steer clear of Ireland's optimistic 100-year bond

Ireland has issued a 100-year bond priced to yield 2.35%. But as this chart of British gilt yields over three centuries suggests, buying it might not be a terribly good idea.

788-COTW

Ireland has issued a 100-year bond priced to yield 2.35%. "Money has to go somewhere", as Lex notes in the Financial Times, and, in this era of ultra-low interest rates, a decent yield is proving more and more elusive. But buying this bond is only remotely justifiable if we face "a century of not particularly inflationary growth and governments with iron discipline" completely unlike the last 100 years, in other words.

Subscribe to MoneyWeek

Subscribe to MoneyWeek today and get your first six magazine issues absolutely FREE

Get 6 issues free
https://cdn.mos.cms.futurecdn.net/flexiimages/mw70aro6gl1676370748.jpg

Sign up to Money Morning

Don't miss the latest investment and personal finances news, market analysis, plus money-saving tips with our free twice-daily newsletter

Don't miss the latest investment and personal finances news, market analysis, plus money-saving tips with our free twice-daily newsletter

Sign up
Explore More
MoneyWeek

MoneyWeek is written by a team of experienced and award-winning journalists, plus expert columnists. As well as daily digital news and features, MoneyWeek also publishes a weekly magazine, covering investing and personal finance. From share tips, pensions, gold to practical investment tips - we provide a round-up to help you make money and keep it.