And interest rates on three-year corporate bonds surged to 24.95 percent, a hair less than the legal limit of 25 percent.

Yields on three-year bonds rose to 7.89pc, up 2.96pc on last month.

For the $335 million in three-year bonds, the yield is 8.25 percent, or about 11 basis points more than Treasuries.

Suppose that we have a three-year bond with annual coupon payments of 10.75.

"I'm like a three-year bond - with a low interest rate," he joked.

The three-year Italian bond drew bids worth 1.22 times the amount on offer.

Recently, a £200,000 three-year bond, representing a large part of my savings, matured.

The three-year bond now pays 4pc a year, and, although the bank has cut the rate, it is still the highest paid on the market.

The yield on three-year corporate bonds now stands around 10 percent.

And its three-year fixed-rate bond is now paying 4pc, putting it equal with the best on the market.