tesco 5.5 2033

Any thoughts on why this bond has strengthened from 94 to 108 in less than a year?


  • It has just moved in line with other long dated bonds - I checked the equivalent gilt and it has done the same. Feeling is interest rates will stay low for longer and these long dated bonds benefit most from that
    edited August 2016
    Bought these and the 4.875 2042 at 95 and 76 respectively and just sold, however looking around at trying to re-invest and the sinking yields, even for bonds I find too risky, I wish I'd kept them.
  • The 40OS TESCO PLC 6% NTS 14/12/29 have also shot up recently to ca. 1.177. I'm very tempted to sell having bought @ 0.9989 , but where do you invest the proceeds?
  • I suspect yields will continue to drop over the next 6 months, therefore little reason to start selling long dates securities, in addition to the good interest received, you hopefully have a sizeable capital gain. Plan to maintain my 2029 Tesco holding.
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