The inaugural 30-year bond
sale offer by Bank Negara Malaysia evoked no interest from foreign buyers.
In late trade, the 30-year bond
was down 30/32, its yield rising to 3.
The first issue is a $750 million 10-year Sukuk which matures in 2023, whilst the second is a $500 million 30-year bond
that matures in 2043.
Buying picked up in the afternoon after a 30-year bond
auction went smoothly.
The 30-year bond
was trading 23/32 lower in price to yield 3.
CHICAGO, June 8 /PRNewswire-FirstCall/ -- Despite the initial surprise experienced by the bond market when the Treasury Department announced the potential revival of the 30-year bond
, the development is unlikely to raise interest rate levels or result in a steeper yield curve, says Colin Robertson, director of fixed income for Northern Trust.
The Global 2034 issue at the beginning of the year was very well received, with low interest rates," says Joaquim Levy, Brazil's treasury secretary, referring to a 30-year bond
sold a year ago that carried a spread of 376 basis points over U.
The average maturity should be somewhere in the three- to five-year range versus the 20- or 30-year bond
that you can hold in a portfolio while interest rates drop.
That rate, however, expires at the end of 2003, so the 30-year bond
rate will go back in effect.
However, in October 2001, the Treasury Department stopped issuing the 30-year bond
-- though the old bonds are still out there -- and the bond rate has been declining, causing required funding levels to become uncoupled from actual obligations.
II, led by Jim Petty, received the 30-year bond
issue through the Pulaski County Public Facilities Board, secured by a $5.
The average tax over the life of the 30-year bond
will be $59 per $100,000 assessed valuation.