BERLIN: Germany has sold €3.28 billion in five-year bonds with a negative yield for the first time in its history, just days before the eurozone’s monthly €60 billion ‘easy money’ program starts.
The average yield for bonds due in April 2020 auctioned Wednesday was minus 0.08 percent. This was the lowest rate for five-year bonds ever placed by a eurozone country. Earlier this month, Finland placed a similar bond with a yield of negative 0.02 percent.
Negative yield means that investors who buy bonds effectively pay the German state for holding its debt.
