Budget: Ten-year government bonds for the first time with negative interest – THE WORLD

the yield on ten-year German government bonds fell on Tuesday below zero for the first time ever. The negative interest rate means that buyers get back after ten years less money than they invested in the paper – which actually contradicts the logic of a financial investment. Federal Finance Minister Wolfgang Schäuble (CDU) can rejoice, for into debt is cheaper.

background of the enormous demand for German government bonds, among other things, the fear of investors against the consequences of a possible EU exit Britain. Securities Dealers also referred on Tuesday to general concerns about the global economy and the extremely low inflation in the euro area.

Treasuries bring some time already barely rates as central banks as the European Central Bank (ECB) to buy up these securities on a large scale. Even for Swiss and Japanese bonds yields have already fallen into the negative.

The trend in government bonds but has special importance because Germany is the largest European economy , In addition, the ten-year Bunds are the reference title for other government bonds in Europe and also for corporate bonds.

The forthcoming decision on further EU membership Britain moved investors currently particularly. The British vote on Thursday next week in a referendum on whether their country should remain in the EU or not. On Monday, the prices on the markets gave way around the world, the German stock index (DAX) also launched on Tuesday a decline in the trading day.

readers are hidden.

// The following are highly recommended additional parameters. var disqus_identifier = 156215493; // article id where comments used var disqus_url=’http://www.welt.de/newsticker/news1/article156215493/Zehnjaehrige-Bundesanleihen-erstmals-mit-Negativ-Zins.html’;//article url where comments used function disqusAd (e) {var s2 = document.createElement ( ‘iframe’); s2.src = “http://appc.welt.de/static/welt/2012/pa-anzeigen/anzeige.html”; s2.width = 620; s2.height = 100; s2.style.overflow = ‘hidden’; s2.scrolling = “no”; s2.style.border = “none”; $ (E) .parent () append (s2). s2.scrolling = “no”; } Var dsqcounter = 1; / * * DO NOT EDIT BELOW THIS LINE * * * / $ (document) .ready (function () {(function () {var disqusSsoEnabled = false;! Var experimental mode = $ .cookie ( ‘BIGP_EXPERIMENTAL’); if (experimental mode) {disqusSsoEnabled = true;} if (disqusSsoEnabled) {window.disqusid = $ .cookie ( ‘disqusid’); window.disqus_config = function () {this.sso = {name: “Login” button: “http : //img.welt.de/skins/welt/gfx/disqus_login.png “, url:” https://ssl.welt.de/user-web/disqus/login.jsp “logout:” https: / /ssl.welt.de/user-web/disqus/logout.jsp “width” 500 “height:” 500 “}; if (window.disqusid) {window.disqusid = window.disqusid.replace (new RegExp ( “. “, “g”), ‘=’); window.disqusid = window.disqusid.replace (new RegExp ( “_”, “g”), ”); this.page.remote_auth_s3 = window. disqusid; this.page.api_key = ’8JmKKMV2FgF5OgVCye4P0v3Q9aJK8eQOZ6VtqjfLaMgTzrNy465erNMGjGFhbW2X’; }}; }} ()); (Function () {var = document.createElement dsq ( ‘script’); dsq.type = ‘text / javascript’; dsq.async = true; dsq.src = ‘http: //’ + disqus_shortname + ‘.disqus. com / embed.js’; if ($ .cookie ( ‘ASsocialOptout’)! = ‘true’) {(document.getElementsByTagName ( ‘head’) [0] || document.getElementsByTagName ( ‘body’) [0]) .appendChild (dsq);} else {$ ( ‘.disqus .optoutSocMed’) html (optoutHTML) .show ();.}}) (); var = {wDisqusCfg disqussion: true}; asms.extend (asms.config, “wDisqus” wDisqusCfg); asms.general.ece.widgets.disqus.init (asms.config.wDisqus); }); blog comments powered by