Ten-year government bonds for the first time after more than 40 years with negative returns – Südwestpresse

Frankfurt

Since days investors buy more German government bonds, which lowers yields. The reason is the fear of impending Proposed referendum on United Kingdom membership of the European Union

.

At exactly 9:16 it was yesterday, Tuesday so far For the first time in its 44-year history slipped the average yield on ten-year government bonds minus 0.001 percent in the negative range. In the further course it went down to minus 0.004 percent. For the first time put buyers in these bonds it held interest to cash. “Absurdistan is now also arrived at the ten-year,” said an expert development.

To take the most important for insurance companies, pension funds and other large investors Bunds no return from. Private investors meets the. Keep the papers, however, until the end of the term, they receive every year more interest. In the most recent ten-year government bond is only 0.5 per cent, to the best, which expires in 2024, but even 6.25 percent. It can especially Finance Minister Wolfgang Schäuble. Expenditure on interest rates are likely to fall further.

For insurance companies, investment and pension funds on the other hand, it is increasingly difficult to achieve the necessary returns. The interest rate for the next ten-year government bond, which hangs the Finance Agency on behalf of the Minister of Finance on July 13, is likely to be lower than in the last, which was issued in January. Since there were already only 0.5 percent.

98 percent of the peripheral government bonds with a total volume of € 65 billion are large investors, says Jörg Müller, spokesman for the Finance Agency. On private investors thus account for about 2 per cent or € 1.3 billion only. It should be even less. “For private investors it no longer makes sense to buy government bonds,” says a trader in the stock market. The Finance Agency commends the government bonds as an “important because very secure building block for retirement”. Thanks to constant interest payments and the guaranteed repayment at face value at maturity ends yields were deliberately calculated.

In particular, the uncertainty about the possible withdrawal from the EU Britain is in the opinion of Ulrich Kater, chief economist of DekaBank, for the decline in charge of returns and interest. “This is driving investors to the safe haven of government bonds.” More and more insurance and pension funds and fund managers to buy the papers. For this, the central banks of industrialized countries come – currently, particularly in Europe and in Japan – with its so hangover, “aggressive monetary policy” and ever lower interest rates to low and fight falling inflation and the relatively weak growth. And specific measures: The European Central Bank (ECB) has bought since March 2015 government bonds of euro area countries with a volume of € 835 billion, € Only 191 billion for German securities, mainly government bonds

As early. last week, the yield on all Bunds had first slipped into the red. Currently throw only bonds with a maturity of 30 years, a positive return from, up to date just over 0.5 percent. Ten-year government bonds are the most important paper for investors and the finance minister. They are considered absolutely safe and without risk, including guarantees for the German state

The first ten-year government bond was launched on October 22, 1962 -. With 6 percent interest and 250 million DM volume. DM. Today ten-year government bonds are far ahead of two-, five- and 30-year bonds the main refinancing instrument of the covenant. Currently there are 24 bonds outstanding totaling € 481 billion.

comment