Higher-for-Longer Yields Are the Star Attraction in Bond Deluge
- Companies have been selling bonds with longer maturities
- Investors are looking to lock in higher coupons while they can
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Longer-dated debt is the main attraction in January’s deluge of bond sales as investors rush to lock in juicy yields before central banks start cutting interest rates.
Eager borrowers such as T-Mobile US Inc., Berkshire Hathaway Energy Co.’s PacifiCorp and real estate company Vonovia SE are finding enthusiastic buyers for debt that offers some of the most attractive coupons in years. Investors are keen to lock in these deals given expectations that monetary policy easing will drive yields down later in the year.