France will issue 50-years bonds this year, the French Treasury said today, as European states pile into debt markets to raise funds because of stepped-up spending during the economic crisis.
The government bond would have the longest maturity in the euro zone and the issue was expected to raise between €3 billion and €5 billion, the Treasury said.
The 50-year bond will allow the government to carry out long-term financial planning at a relatively low interest premium and will limit risks for investors from a future rise in interest rates, experts say.
The key short-term official interest rate in the euro zone is at a record low of 1%. Rates rise steeply for instruments with longer maturities, but the rate or yield for long-term maturities is still low by historical standards.
