Negative bond yields in the Eurozone

“In several of those markets, including Germany’s, central banks bought at prices that mean policy makers could lose money if the bonds are held to maturity. Bonds that are eligible for QE are also trading at negative yields in France, the Netherlands, Finland, Belgium, Austria and Slovakia.

The phenomenon of investors paying for the privilege of lending money to some eurozone governments reflects markets’ concern that the region could be facing a Japanese-style Lost Decade of economic stagnation.”

http://www.ft.com.ezproxy.is.ed.ac.uk/cms/s/0/e0c1a708-c63d-11e4-9bf4-00144feab7de.html#axzz3TyK5IpRA

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Negative bond yields in the Eurozone

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