And zero is what you get if you purchase the world’s first 30-year bond featuring – zero income. Not much of an outcome there. What a steal. In more ways than one.
Germany Regrets Size of Bond That Pays Nothing as Auction Flops – The world’s first 30-year bond featuring zero income struggled to find buyers, prompting Germany’s debt agency to admit the sale may have been “too large.”
The nation failed to meet a 2-billion-euro target ($2.2 billion) for the auction of notes maturing in 2050, signaling that negative yields across Europe may finally be taking their toll on demand. It’s another sign that the global bond rally may be coming to a halt now that more than $16 trillion of securities have negative yields.
“The broader conclusion is that this is an ominous sign for cash bonds.”
I’m gonna buy a mess of these. But like what will be my German Bund’s 10-year yield at -0.030 percent? I mean, will there still be any of my investment left?
“Nobody buys bunds at these yield levels thinking they are attractive. Demand for haven assets is being driven by fear of Brexit and growth concern. Investors are buying bunds as a hedge against uncertainty.”
For the first time in 40 years US-Amerika has now surpassed France as Germany’s most important trading partner.
Of course now everybody is trying to figure out who to blame for this and how to fix it.
One theory goes that the policy of low interest rates and the government bonds buyback program by European Central Bank president Mario Draghi has devalued the euro and made selling in other parts of the world a whole lot easier. I’ll “buy” that. Hardy, har, har.
Erstmals seit vier Jahrzehnten haben die USA Frankreich als wichtigsten Handelspartner Deutschlands abgelöst. 2015 seien Waren im Wert von 173,2 Milliarden Euro zwischen Deutschland und den Vereinigten Staaten gehandelt worden.
In more ways than one. Investors are now paying for the privilege of lending Germany money.
On Wednesday, Germany issued its first 5-year bond ever with a negative yield, which means investors are making a loss by loaning money to the German government. It sold €3.3 billion ($3.7 billion) of debt at a negative yield of 0.08%, according to the country’s Finance Agency.
If it sounds backwards, that’s because it is.
Investors appear willing to buy at these rates because of falling inflation in Europe. There are even concerns about deflation, which could trigger bigger problems like a recession. The idea is that these German bonds would lose less value than other assets.
PS: Thanks for the way cool “V for Varoufakis” video, A.K.
It’s undeniable that Germany has great interest in helping Greece. Why just look at the great interest they’re getting back by doing so.
Despite all the perpetual bitching and moaning about having to foot the bailout bill for their bankrupt buddies in the bottomless pit, German tax payers raked in some 380 million euros on Greek aid interest payments in 2011 and are likely to pull in a whole lot more this year. It’s good to be the king, I mean lender.
Geez. With generosity like this, who needs extortion?
Im Rahmen des ersten Griechenland-Hilfspakets hat die Bundesrepublik dem Euro-Partner Darlehen von insgesamt 15,17 Milliarden Euro gewährt, um das Land vor der Pleite zu retten. Der Zinssatz habe zwischen 3,423 und 4,528 Prozent gelegen.
Observing Hermann 