Alphabet's 100-year sterling bond has fallen more than 7% since its February issuance. Issued in February 2026 and maturing in February 2126, the bond initially saw strong demand and was oversubscribed, but subsequently declined steadily.
Market participants believe the sell-off is the result of a combination of factors, including the bond's century-long maturity, a surge in bond issuances by global hyperscale cloud service providers, and increased political uncertainty in the UK. Ultimately, this outcome is not entirely unexpected. Nevertheless, it demonstrates that investment-grade technology bonds issued this year have almost universally depreciated amid rising long-term yields. This is compounded by the fact that these bonds are affected by both the increasing volatility in the artificial intelligence sector and inflation.
