Monday, January 9, 2012

Negative German yields

German Debt Yields Turn Negative at Auction
FRANKFURT—Investors effectively paid Germany to keep their money Monday, underscoring the haven appeal of German debt as the European debt crisis rumbles on.
It was the first time in history that yields at a German debt auction moved into negative territory, though yields in the secondary market, where investors trade the debt among themselves, have fallen below zero in the past.
In contrast, yields on French Treasury bills climbed from the previous sale, on Jan. 3. Concern is growing that France may soon lose its triple-A credit rating.
Germany joins Switzerland and the Netherlands in having negative yields at auctions. ...
Comment: Put in a different way one may say that money, too, ain't any more what it once was.

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