Investors pay Germany for the privilege to lend it money

[Mr. Big Dog 10,747]

Germany Gets Negative Yield for First Time in Auction

Germany sold 3.9 billion euros of six-month Bubills at a yield of -0.0122 percent on Monday, the first auction on record with a negative yield.

The result underscores the safe haven appeal of German debt in the midst of the European debt crisis continues. Negative yields indicate that investors are so nervous about protecting their money that they're willing to essentially pay an interest rate to keep it safe. See a video discussion here on the safe haven appeal of Germany's debt.

Bundesbank data showed the auction drew bids for 1.8 times the amount on offer, compared with 3.8 times at the previous auction in December.

Other European countries that have sold bonds at a negative yield include Switzerland and the Netherlands.

...and Denmark

[I AM NOT THAT GUY 5,715]

As long as Germany is tied to the Euro, have safe can it really be?

Msybe European investors should find a less European prospectus.

Edited January 9, 2012 by ☼

[Mr. Big Dog 10,747]

As long as Germany is tied to the Euro, have safe can it really be?

Msybe European investors should find a less European prospectus.

Who would that be? The US? Sure, we're still paying interest - however little that may be. And yet investors rather pay some European nations to use their money. Seeing that I am German, maybe I ought to inquire with my mortgage lender whether they'd like to pay me for having my mortgage with them.