Tesco Joins AT&T Selling Euro Bonds as Borrowing Costs Decline

Tesco Plc (TSCO), the U.K.’s biggest grocer, and AT&T Inc. (T), the largest U.S. telephone company, are selling bonds in euros as borrowing costs approach the lowest in 4 1/2 months in Europe.
It’s Tesco’s first sale of notes in the currency since 2011, while AT&T joins a surge of U.S.

companies selling the most debt in Europe in six months, according to data compiled by Bloomberg.
U.K. services growth unexpectedly accelerated in October to the fastest in 16 years, indicating continued strength in the economic recovery at the start of the fourth quarter. Borrowing costs may start to increase next year when the Federal Reserve reduces its stimulus program, which economists forecast will happen in March.

“Yields are still attractive on a historical level so companies are making the most of it,” said Nick Burns, a credit strategist at Deutsche Bank AG in London. Read more.