# Significance of 50 year corporate/Govt bonds?



## ClubMan (11 Mar 2005)

What, if anything, is the significance, in macro economic terms, of the recent spate of corporate and Government bonds being issued?


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## ClubMan (11 Mar 2005)

Oh - just came across this article which seems give some insight into the issue.


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## Protocol (12 Mar 2005)

*bonds*

Hmm, I didn't know there was a spate of bonds issued.

But one reason is to lock-in debt at the very low bonds yields at the moment. Example, 10-year bonds are yielding 3.5%-4%.  That means the Irish govt can borrow at these rates.

At end-2004 yield were as follows:

2009 bond = 2.95%
2013 bond = 3.5%
2016 bond = 3.75%
2020 bond = 3.99%

This is why I am sceptical about PPPs, sure the govt can borrow for infrastructure over 20 years at 4%, lower than any private firm.


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