Tuesday, October 05, 2010

Markets in Everything: Mexican Century Bonds Edition

This is a pretty amazing turn of events. Mexico is selling 100 year government bonds and the expected yield is around 6%!

I admit that I am impressed with Mexico's macro management over the last 10 years, but a 6%, 100 year bond?? I don't think I'd be that bullish on Mexico.

I would suggest to our own government though that borrowing long now, rather than short is a good idea.

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