Chart of the week: a tale of two century bonds
Investors keep buying Argentinian debt even though they really should know better. The price of Argentina’s century bond has slumped by 45% as concern over the latest debt crisis has grown. At the same time, Austria’s 100-year bond has surged this year.
This chart "illustrates several truths about the bond market", says Tracy Alloway on Bloomberg. Investors keep buying Argentinian debt even though they really should know better. The price of Argentina's century bond has slumped by 45% as concern over the latest debt crisis has grown. At the same time, Austria's 100-year bond has surged this year.
It's not that Austria has covered itself with glory lately; indeed, its governing coalition recently collapsed. But as yields on other, shorter-duration bonds slumped amid the latest bond rally, Austria's yield started to look relatively juicy. "Even if fundamentals matter, no investment stands out on its own. It's all relative to something else."
Viewpoint
David Rosenberg, Gluskin Sheff
Subscribe to MoneyWeek
Subscribe to MoneyWeek today and get your first six magazine issues absolutely FREE

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
Get the latest financial news, insights and expert analysis from our award-winning MoneyWeek team, to help you understand what really matters when it comes to your finances.
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.
-
Just Group has the wind behind it – should you invest?
Just Group, a retirement products provider, is well placed to profit from a growing annuity market
-
8 of the best houses for sale for around £500,000
The best houses for sale for around £500,000 – from an 1850s property in Great Yarmouth with a viewing tower overlooking the harbour, to an apartment in period property with a private residents’ garden in Greenwich