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Nestle Brings Negative Yields to Long-Dated Euro Company Bonds

  • Yield of Swiss group’s 10-year bond is first to turn negative
  • Long Walmart, Sanofi and Airbus bonds trade slightly above 0%
Euro-denominated bonds maturing in just over 10 years drop below 0% for first time

Euro bond investors’ attempts to shelter from a growing pool of negative-yielding debt just got tougher: Nestle SA today became the first company to have 10-year euro debt yielding below zero.

The yield-to-worst on the confectionery maker’s 750 million euros ($841 million) of November 2029 maturity notes dipped to as low as -0.11% this morning, meaning holders will make a loss if held to maturity. It’s another blow to portfolio managers who look at corporate bonds as an alternative to government bonds awash with negative yields.