Duration Danger Is Making Europe’s Ultra-Long Bonds a Hard Sell
- Region’s safest bonds suffer worst losses since at least 2013
- Persistent inflationary measures seen hurting long end in U.S.
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After seizing on the lowest rates in history to extend debt maturities into the next century, Europe’s safest issuers have hit an impasse.
Ultra-long debt is on pace for its steepest declines in more than seven years, as rebounding growth and inflation prompt investors to dump the safest debt that’s most sensitive to interest-rate risk.