The weirdest news I heard for many many years..!!

UKboy · 1 The weirdest news I heard for many many years..!! Wed Jan 11, 2012 3:23 am

UKboy

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Germany sells six-month bonds at negative yields

Would you believe this.!

Investors are flocking to havens to store their cash, amid continuing worries about the eurozone debt crisis.

Germany sold 3.9bn euros (£3.2bn) of six-month bonds at an average yield of -0.0122%, the first auction with a negative yield.

That means investors are effectively willing to pay Germany for the privilege of lending to it...!!!!

http://www.bbc.co.uk/news/business-16470494

Slstock · 2 Re: The weirdest news I heard for many many years..!! Wed Jan 11, 2012 3:33 am

Slstock

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Am dumbfounded as you are Ukboy

Let us pay germany as we are priviledged to buy their bonds. Hmmimteresting concept!
would like to see the positive reasons why one subscribes other than it being the so called powerhouse in europe.

wonder whether germany gives other perks if one subcribes to these bond.Like citizenship Cool

sriranga · 3 Re: The weirdest news I heard for many many years..!! Wed Jan 11, 2012 3:51 am

sriranga

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Regarding German bond

"To me, it's more like a safety deposit box than an investment,"

"People go to their bank and pay a fee for the bank to keep their valuables in a safety deposit box. You're not trying to earn interest, you just want to park what you have there and you're willing to pay a fee to have the family jewels protected."

"It's hard to put a million dollars under the mattress,"

Comments made by Ian Nakamoto, research director at MacDougall, MacDougall & MacTier in Toronto.

For more reading why
http://www.cbc.ca/news/business/story/2012/01/09/germany-bond-yield-negative.html

UKboy · 4 Re: The weirdest news I heard for many many years..!! Wed Jan 11, 2012 4:17 am

UKboy

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Sadly this shows how uncertain the world economy now is. Question

To be honest there wont an Eurozone without Germany.

Slstock · 5 Re: The weirdest news I heard for many many years..!! Wed Jan 11, 2012 4:39 am

Slstock

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UKboy wrote:Sadly this shows how uncertain the world economy now is.

You are right about that.

When Sri Lankan bank rates were 7-8% people were worried ( who depends on deposit interest rates and not worry too much about lending rates) some USA bank rates were 0.02% per year. It still is. Yeah 0.02% per year. I was thinking this is crazy as customers are almost paying them to keep their money and how much better is Sri lanka on least the deposit rates ( won;t go into relation between deposit and lending rates as that is seperate to this point) .

Now Germany beats hand down. Negative rate : ie to pay them?

Glories of uncertainty and what people would for safety over money when uncertainty/need arises.

People thinking can be all relative depending on changing times.

greedy · 6 Re: The weirdest news I heard for many many years..!! Wed Jan 11, 2012 8:37 am

greedy

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This happened in the USA too some time ago. In 2008 US treasury sold securities with 0% yield and once in 2010 with negative yield!!!

http://www.bloomberg.com/news/2010-10-25/treasury-draws-negative-yield-for-first-time-during-10-billion-tips-sale.html

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The weirdest news I heard for many many years..!!

1 The weirdest news I heard for many many years..!! Wed Jan 11, 2012 3:23 am

UKboy

2 Re: The weirdest news I heard for many many years..!! Wed Jan 11, 2012 3:33 am

Slstock

3 Re: The weirdest news I heard for many many years..!! Wed Jan 11, 2012 3:51 am

sriranga

4 Re: The weirdest news I heard for many many years..!! Wed Jan 11, 2012 4:17 am

UKboy

5 Re: The weirdest news I heard for many many years..!! Wed Jan 11, 2012 4:39 am

Slstock

6 Re: The weirdest news I heard for many many years..!! Wed Jan 11, 2012 8:37 am

greedy

7 Re: The weirdest news I heard for many many years..!!

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