The most recent example of the bond bubble's speculative euphoria are the 50 year government bond sales in Europe. Martin Armstrong wonders if this insanity finally signals the top;
"If there was ever any question that this is a bond bubble with a
5,000-year low in interest rates, the final bit of insanity just took
place. Italy managed to sell its first 50-year bond last week as
investors were betting that the European Central Bank might soon add
ultra-long debt to its asset-purchase stimulus scheme. Draghi has said
he would do whatever it takes to stimulate inflation. Hence, speculators
are betting they can sell these 50-year Italian bonds to the ECB for a
profit.
The speculation was so great that about 16.5 billion euros in orders
were received for a bond issue that was about 20% of that amount. They
are not considering the risk that the upcoming referendum might
overthrow Italy’s prime minister. This is speculation gone completely
mad. These insane speculators have already bought 50-year bonds from
Belgium, France, and Spain as well. Many of these same speculators have
also signed up for Ireland’s 100-year bond in March."
