Alphabet's century bond falls below 90% of its face value for the first time, mega-scale cloud service provider bond credit spreads widen

```htmlJinse Finance reported that on July 24, Alphabet Inc., amid large-scale global bond issuance earlier this year, issued a 100-year bond in the pound sterling market. The price of this bond has, for the first time, fallen below 90 pence per pound face value. Data shows that this 1 billion pound (1.34 billion USD) bond, maturing in 2126, closed at 89.978 pence on Thursday. The tech giant issued this bond in February at a price slightly below par. The credit spread over the risk-free benchmark rate once reached as high as 139.8 basis points. Among all senior corporate bonds worldwide that reach benchmark size, this bond has the longest remaining maturity. It is currently facing twofold pressure: first, market concerns about AI-related bond issuance; and second, rising government bond yields as fiscal deficit and inflation worries resurface. Due to its very long modified duration, for every 1 percentage point increase in yield, the price of this bond could fall nearly 15 pence. Meanwhile, UniCredit credit strategist Michael Teig wrote in a report on Thursday: “The credit spreads of hyperscale cloud service provider bonds have widened recently, sparking renewed debate among investors about the viability of their business models, especially given the massive scale of capital expenditures at these companies.”```