Apple Bond Sales Fuel Speculation U.S. Rates Poised to Rise
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Apple Inc.’s mega bond sale is fueling speculation U.S. interest rates are poised to increase.
The iPhone maker issued $6.5 billion of debt Monday, locking in borrowing costs for as long as three decades. The sale follows a plunge in benchmark Treasury yields, with U.S. 30-year yields falling to a record last week. They may not stay this low if forecasts for the Federal Reserve to raise rates are correct. An Apple bond sale in 2013 coincided with the record low in company borrowing costs.