Investors Now Paying Germany Premiums to Hold their Cash

Anyone who questions when I began warning that interest rates would go negative, well that day has arrived. Investors are now paying Germany to park their money. At the first auction of six-month German Treasury bills after the recent ECB rate cut, investors had to make do with a negative yield of 0.0934 percent on Monday. That’s a new record. Investors may therefore not as usual money from the federal government, but have to pay more themselves
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This post was published at Armstrong Economics on September 8, 2014.