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