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German Yield Curve Completely Negative

This is a syndicated repost courtesy of Confounded Interest. To view original, click here. Reposted with permission.

Things are getting crazy in Europe, particularly in Germany and Denmark,

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As Brexit approaches, Germany is desperately trying to save their economy (or at least their banking system) by borrowing at negative rates for 30-years.

The German government sold 869 million euros of 30-year bonds with a negative yield, for the first time ever, adding to the world’s growing $15 trillion in existing negative yielding debt.

The bund, set to mature in 2050, has a zero coupon, meaning it pays no interest. Germany offered 2 billion euros worth of 30-year bunds, and investors were willing to buy less than half of it, with a yield of minus 0.11%.

Here are the German sovereign yield curve (blue) and the Danish sovereign curve (green).

gerden.png

Of course, the US Treasury curve has the same “bucket” shape as Germany and Denmark (as well as numerous other nations).

usyctrump.png

While not totally submerged, Sweden, France and the UK all have the bucket shape.

ukswedenfrance.png

Just so we understand, it’s not just Europe that is slowing. China is slowing too (and before the tariff war).

chinagdp

Sovereign yield curves are Shakin’ all over.

Wall Street Examiner Disclosure:Lee Adler, The Wall Street Examiner reposts third party content with the permission of the publisher. I curate posts here on the basis of whether they represent an interesting and logical point of view, that may or may not agree with my own views. Some of the content includes the original publisher's promotional messages. I may receive promotional consideration on a contingent basis, when paid subscriptions result. The opinions expressed in these reposts are not those of the Wall Street Examiner or Lee Adler, unless authored by me, under my byline. No endorsement of third party content is either expressed or implied by posting the content. Do your own due diligence when considering the offerings of information providers.

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