Page 1 of 5 123 ... LastLast
Results 1 to 10 of 45

Thread: Germany Sells Five-Year Debt at Negative Yield for First Time on Record

  1. #1
    onomatopoeic
    mbig's Avatar
    Join Date
    May 2009
    Last Seen
    04-20-17 @ 07:59 PM
    Gender
    Lean
    Other
    Posts
    10,350

    Germany Sells Five-Year Debt at Negative Yield for First Time on Record

    You think our Rates are Low?
    With a new EU QE coming, rates have been low and now are ridiculous.
    Even dubious Italian and Spanish 10 year paper yield LESS than the same USA debt.
    Other, shorter term issues, have sold at negative yields, but never anything like 5 year ones.

    Germany Sells Five-Year Debt at Negative Yield for First Time on Record

    Move Reflects Plummeting Borrowing Costs Across Europe
    By EMESE BARTHA And BEN EDWARDS
    Updated Feb. 25, 2015 9:20 a.m. ET
    http://www.wsj.com/articles/germany-...ord-1424871074

    Germany on Wednesday sold five-year government debt at a negative yield for the first time on record, reflecting plunging borrowing costs across the region in the run-up to the European Central Bank’s sovereign-bond-buying program.

    The German Finance Agency sold €3.281 billion ($3.72 billion) of bonds maturing in April 2020 at an average yield of Minus 0.08%. At a similar deal in January, the yield was 0.05%.

    The Negative yield means investors are effectively paying the German state for holding its debt. Even so, bond prices—which climb when yields drop—are expected to rise further once the ECB starts its latest round of stimulus measures next month, meaning investors could potentially sell the bonds at a profit.

    “The negative yield is not scaring investors away,” said Jens Peter Sorensen, chief analyst at Danske Bank .
    Given that eurozone interest rates are likely to remain low for some time...
    Here were Rates on Major economy 10 Year Treasuries as of Last Night. Also WSJ.

    U.S. 10 Year _ _ _ _ _ 1.991
    German 10 Year _ _ _ 0.333
    Japan 10 Year _ _ _ _ 0.348

    U.K. _ _ _. _ _ _ _ _ _ _ 1.72
    Italy _ _ _ _ _ _ _ _ _ _ 1.45
    Spain _ _ __ _ _ _ _ _ _ 1.38

    So guess whose Bonds the Chinese and other Large Sovereigns and Private Pensions just about Have to Buy?
    Only the USA has the size and yield.
    Last edited by mbig; 02-25-15 at 03:31 PM.
    I'm personally sick of not being able to dunk a basketball because of racism.
    anon

  2. #2
    ThunderCougarFalconBird
    roughdraft274's Avatar
    Join Date
    Feb 2010
    Location
    Louisiana
    Last Seen
    Today @ 02:03 PM
    Gender
    Lean
    Other
    Posts
    10,079

    Re: Germany Sells Five-Year Debt at Negative Yield for First Time on Record

    Yep, we got them Chinese right where we want em...

  3. #3
    onomatopoeic
    mbig's Avatar
    Join Date
    May 2009
    Last Seen
    04-20-17 @ 07:59 PM
    Gender
    Lean
    Other
    Posts
    10,350

    Re: Germany Sells Five-Year Debt at Negative Yield for First Time on Record

    Quote Originally Posted by roughdraft274 View Post
    Yep, we got them Chinese right where we want em...
    I did NOT say nor imply we "have the Chinese just where we want them."
    They're buying everything with 'Our' money, including Real Estate Nationwide, especially Trophy Properties, including recently: the Waldorf Astoria ($2 Billion) and $50,000,000 condos and Mansions.
    Last edited by mbig; 02-25-15 at 03:44 PM.
    I'm personally sick of not being able to dunk a basketball because of racism.
    anon

  4. #4
    Sage

    Join Date
    Jul 2013
    Last Seen
    Today @ 12:13 PM
    Lean
    Independent
    Posts
    37,490

    Re: Germany Sells Five-Year Debt at Negative Yield for First Time on Record

    Quote Originally Posted by mbig View Post
    I did NOT say nor imply we "have the Chinese just where we want them."
    They're buying everything with 'Our' money, including Real Estate Nationwide, especially Trophy Properties, including recently the Waldorf Astoria ($2 Billion) and $50,000,000 condos and Mansions.
    It's good for the economy their spending that money. Only another couple of trillions and we're there.

  5. #5
    Sage

    Join Date
    Jul 2013
    Last Seen
    Today @ 12:13 PM
    Lean
    Independent
    Posts
    37,490

    Re: Germany Sells Five-Year Debt at Negative Yield for First Time on Record

    Quote Originally Posted by mbig View Post
    You think our Rates are Low?
    With a new EU QE coming, rates have been low and now are ridiculous.
    Even dubious Italian and Spanish 10 year paper yield LESS than the same USA debt.
    Other, shorter term issues, have sold at negative yields, but never anything like 5 year ones.

    Germany Sells Five-Year Debt at Negative Yield for First Time on Record

    Move Reflects Plummeting Borrowing Costs Across Europe
    By EMESE BARTHA And BEN EDWARDS
    Updated Feb. 25, 2015 9:20 a.m. ET
    Germany Sells Five-Year Debt at Negative Yield for First Time on Record - WSJ



    Here were Rates on Major economy 10 Year Treasuries as of Last Night. Also WSJ.

    U.S. 10 Year _ _ _ _ _ 1.991
    German 10 Year _ _ _ 0.333
    Japan 10 Year _ _ _ _ 0.348

    U.K. _ _ _. _ _ _ _ _ _ _ 1.72
    Italy _ _ _ _ _ _ _ _ _ _ 1.45
    Spain _ _ __ _ _ _ _ _ _ 1.38

    So guess whose Bonds the Chinese and other Large Sovereigns and Private Pensions just about Have to Buy?
    Only the USA has the size and yield.
    Negative interest rates are interesting., aren't they? But even low rates are not the sign that all is well.

  6. #6
    ThunderCougarFalconBird
    roughdraft274's Avatar
    Join Date
    Feb 2010
    Location
    Louisiana
    Last Seen
    Today @ 02:03 PM
    Gender
    Lean
    Other
    Posts
    10,079

    Re: Germany Sells Five-Year Debt at Negative Yield for First Time on Record

    Quote Originally Posted by mbig View Post
    I did NOT say nor imply we "have the Chinese just where we want them."
    They're buying everything with 'Our' money, including Real Estate Nationwide, especially Trophy Properties, including recently: the Waldorf Astoria ($2 Billion) and $50,000,000 condos and Mansions.
    Didn't mean to suggest that you meant that, I was cracking a joke.

  7. #7
    Sage

    Join Date
    Dec 2011
    Location
    Florida
    Last Seen
    Today @ 12:29 PM
    Gender
    Lean
    Liberal
    Posts
    20,354

    Re: Germany Sells Five-Year Debt at Negative Yield for First Time on Record

    Quote Originally Posted by joG View Post
    Negative interest rates are interesting., aren't they? But even low rates are not the sign that all is well.
    All is not well in Europe. Their economies are suffering from the bank installed austerity and the continued absence of the "Confidence Fairy" that was to be their savior. They are only now getting around to QE when their economies are dangerously close to deflation from previous tight money policies. Thankfully we did not fall into that trap here. Thank you Obama.

  8. #8
    Sage

    Join Date
    Jul 2013
    Last Seen
    Today @ 12:13 PM
    Lean
    Independent
    Posts
    37,490

    Re: Germany Sells Five-Year Debt at Negative Yield for First Time on Record

    Quote Originally Posted by iguanaman View Post
    All is not well in Europe. Their economies are suffering from the bank installed austerity and the continued absence of the "Confidence Fairy" that was to be their savior. They are only now getting around to QE when their economies are dangerously close to deflation from previous tight money policies. Thankfully we did not fall into that trap here. Thank you Obama.
    Thank Hank Paulson for that. After all, credit should be given thise to whom it is due.

  9. #9
    A sinister place...
    OrphanSlug's Avatar
    Join Date
    Sep 2011
    Location
    Atlanta
    Last Seen
    05-18-17 @ 07:53 AM
    Gender
    Lean
    Independent
    Posts
    10,860

    Re: Germany Sells Five-Year Debt at Negative Yield for First Time on Record

    This is what happens when the EU talks about Quantitative Easing, spread across the EU nations who are at different points in fiscal and debt condition. There is pressure on bonds (not just in Germany) given this prospect of the European Central Bank engaging in a 60 B per month bond buying program. The result is a negative yield for these German Bonds due to deflation. Germany, just before this ECB program is to get going, issued 3.28 B five year notes at minus 0.08 percent. The yield on this term German notes has been in decline ever since Q1 2013. But what this did was beat out Finland, who last month did a minus 0.02 percent yield under similar conditions. The difference is Germany has a bigger bond market with a more global grouping of buyers. Because of these movements and what happened with these German bonds, is it assumed that eventually (if not already) that Finnish, Dutch, Austrian and German should all end up with negative bond yields (which means the bond price is up.) Match that to other EU nations where this is not happening the same way and you should be able to see the concern.

    Things are about to get more interesting as we talk about which nation within the EU continually has to shift debt around, or outright ask for debt forgiveness.
    "Every time something really bad happens, people cry out for safety, and the government answers by taking rights away from good people." - Penn Jillette.

  10. #10
    User
    Join Date
    Feb 2015
    Last Seen
    @
    Gender
    Lean
    Slightly Liberal
    Posts
    86

    Re: Germany Sells Five-Year Debt at Negative Yield for First Time on Record

    Quote Originally Posted by mbig View Post
    You think our Rates are Low?
    With a new EU QE coming, rates have been low and now are ridiculous.
    Even dubious Italian and Spanish 10 year paper yield LESS than the same USA debt.
    Other, shorter term issues, have sold at negative yields, but never anything like 5 year ones.

    Germany Sells Five-Year Debt at Negative Yield for First Time on Record

    Move Reflects Plummeting Borrowing Costs Across Europe
    By EMESE BARTHA And BEN EDWARDS
    Updated Feb. 25, 2015 9:20 a.m. ET
    Germany Sells Five-Year Debt at Negative Yield for First Time on Record - WSJ



    Here were Rates on Major economy 10 Year Treasuries as of Last Night. Also WSJ.

    U.S. 10 Year _ _ _ _ _ 1.991
    German 10 Year _ _ _ 0.333
    Japan 10 Year _ _ _ _ 0.348

    U.K. _ _ _. _ _ _ _ _ _ _ 1.72
    Italy _ _ _ _ _ _ _ _ _ _ 1.45
    Spain _ _ __ _ _ _ _ _ _ 1.38

    So guess whose Bonds the Chinese and other Large Sovereigns and Private Pensions just about Have to Buy?
    Only the USA has the size and yield.
    When a country does know how to deal with industry and economy, the rates get low. Germany has zero need for them.

    Simple as that.

    Insteat of financial industry, the better alternative is real production, insteat of Wall Street and London bubbles, better Dretroit (Ford) Computers, Mercedes, BMW and and and...financial indutry is....TRASH and sort of criminal legalized.

Page 1 of 5 123 ... LastLast

Posting Permissions

  • You may not post new threads
  • You may not post replies
  • You may not post attachments
  • You may not edit your posts
  •