Long Dated Bonds Surge To 3.77% - 2 Year Highs

Tyler Durden's picture

Equities appear to be celebrating the bond market's rapid collapse today but there are already unintended consequences. With the entire complex seeing yields spike the most in a month (cracking back above yesterday's post-FOMC spike highs), 30Y yields have broken to new two-year high levels at 3.77%. As rates rise, issuers are struggling. Whether it is because of Detroit concerns or the sell-off in bonds, Michigan's Genesee County just pulled its $53mm muni offering  as "investors wanted a much higher interest rate than the county wanted to pay." The offering didn't attract buyers for a 29-year bond, the longest maturity in the deal, at an interest rate or 5.34%. Perhaps they should have issued stock?

 

 

On a side-note, as AAPL enjoys one of its best runs since it equity price collapse, AAPL's bonds have lost almost 12% of their value since issuance...

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