tesco 5.5 2033

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

Comments

  • 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
  • SJDSJD
    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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