Long-term bonds sold during pandemic hit hard as rates soar. They have the highest price sensitivity to changes in interest rates. A 30-year US Treasury bond sank below $0.50 on Monday. Among investors are ETFs, pension funds and insurance companies. Of course, a slide in interest rates would cause their prices to rise and turn these bonds into winners.

Trillion-dollar green finance targets of leading investment banks are driving a boom in “sustainable” debt. The FCA in the UK warned banks over “greenwashing”. Bank of America structured $500mn of “blue” bonds for the state of Gabon, but the bank said it could not guarantee that the description complied with sustainable investing standards.

US corporate bond maturities fall to the lowest in a decade. Investment-grade yields are at 6% and near-term bonds yield more than longer-dated bonds. Companies hope that rates will have fallen when they need to refinance. Some investors prefer high yields of shorter-term debt, while long-term investors such as pension funds prefer to lock-in higher rates.

The UK pension funds and insurance companies have £5tn in long-term assets, but they have no appetite for long-term investment in productive capital. Millions of people in the UK will retire with an inadequate pension. Compared to other countries, the 8,200 UK pension funds are more numerous, have higher costs and a narrower asset allocation.

Equivalent to around 5% of Belgian bank deposits. The bond sale was designed to compete with bank deposits to force banks to raise interest rates. More than 600,000 Belgians signed up for the one-year notes which earns 3.3%, while one-year term deposits earn 3.13% on average. This may influence the financial stability of some banks.

London Stock Exchange will offer trading of traditional financial assets on the blockchain. LSE stressed that it is not building anything around crypto-assets. It is using digital technology to make the processes of issuance, trading, reconciliation and settlement that are slicker, smoother, cheaper and more transparent, initially for the private markets.

Money-market fund assets climbed to an all-time high of USD 5.57 trillion. Reasons: the economic outlook and Federal Reserve's decision to raise its interest rate to 5.5%, the highest in 22 years. Money funds have been quicker to pass on the benefits to investors than banks. Investors can earn more than 5% on risk-free assets like Treasury bills.

While many investors snapped up money market products to take advantage of rising rates, BlackRock’s president Rob Kapito expects much of these $7 trillions are poised to shift into bonds. “There are trillions... that are ready, when people feel rates have peaked, to flood the market and we need to position ourselves to capture that,” said Kapito.

APG, one of the world’s largest asset managers, said its pension fund clients were shying away from China due to geopolitical risks. The comments come as other large pension funds pull back from China. European markets have gained more allure for investors. APG is no longer pulling money out of Europe and exploring new asset classes.

Investors have bet that the Japanese central bank will increase its rate. That has led to higher Japanese bond yields. Japan’s life insurers, with assets of $2.9 trillion, sold a record $107 billion of foreign bonds sending a chill through foreign bonds markets. The next wave of foreign bond reductions could more squarely hit corporate bond demand.

Influx of cash following a crisis at regional lenders failed to offset the steady outflows to money market funds that now hold a record $5.2 trillion from $4.6 trillion a year ago. Due to high interest rates, banks earn more on loans, but will need to start offering higher rates to depositors, which will lower their profits. The turmoil has also weighed on bank stocks.

Inflation-linked US Treasury Series I bonds sales topped $40 billion as investors looked for ways to shield their cash from rising prices. The interest rate has two parts. The fixed rate is set by the Treasury for the entire lifetime of the bond. The variable rate is set twice a year and depends on the consumer price index. Each American can buy up to $10,000.