Austria Sells Second Ever Century Bond After Getting Record Bids
- Austria’s two-billion-euro sale to lock in low borrowing costs
- Treasury sets yield on offering at 0.88%, below initial 0.95%
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Getting a yield of less than 1% to lock your money up for 100 years might not sound like a great deal, yet the rush for safety means Austria’s century bonds have nearly doubled in value so far.
That’s why the nation’s sale of new debt that matures in 2120 garnered record orders of more than 17.7 billion euros ($19.9 billion), with a coupon of 0.85%. It follows the success of its first century bond three years ago, which has rallied to return investors about 85% since then.