Negative bond yields in Germany – a painful first. Give Germany $1.00, get back $0.9999 in three months.
Germany Sells Bills With Negative Yield for First Time Amid Crisis Concern
We’ve seen negative yields in the secondary market, but this is the first time bidders at a bond auction have turned negative.
Keep in mind that inflation in Germany is 2.1% (source Trading Economics) so these are real purchasing power losses.
Link: Germany Sells Bills With Negative Yield
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Updated Jan 17, 2012 by