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
Sign up for MoneyWeek's newsletters
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.
-
Rachel Reeves faces £23 billion capital gains tax “black hole” – will she be forced to look elsewhere?
The fiscal watchdog has downgraded its forecast for capital gains tax revenues, leaving chancellor Rachel Reeves with £23 billion less than previously expected
By Katie Williams Published
-
Protests erupt in Turkey after the arrest of Erdogan's rival
Turkey's president has jailed his main political opponent, Ekrem Imamoglu
By Emily Hohler Published