4 ms·
$5.5 Trillion in Government Bonds Now Have Negative Yields
- Zyst 11y agoBehind a paywall
- stephenitis 11y agoCan pay wall sights be tagged so that... i don't click on those links?
- venning 11y agoClick on the "web" link above and then click on the FT.com result. (You may also need to load that link in an Incognito tab.)
- lobster_johnson 11y agoGoing via Google circumvents the paywall: https://www.google.com/search?num=30&safe=off&q=%245.5+Trillion+in+Government+Bonds+Now+Have+Negative+Yields+site%3Aft.com&oq=%245.5+Trillion+in+Government+Bonds+Now+Have+Negative+Yields+site%3Aft.com&gs_l=serp.3...3777.4967.0.5022.12.10.0.0.0.0.173.652.0j5.5.0....0...1.1.64.serp..7.0.0.-klpEkWqIes https://www.google.com/search?num=30&safe=off&q=%245.5+Trill...
- venning 11y agoClick on the "web" link above and then click on the FT.com result. (You may also need to load that link in an Incognito tab.)
- iofj 11y agoIn case anyone wonders who would buy these and why, the government has made it mandatory for banks to buy these themselves if they have deposits or loan. So this is effectively a tax on banks.
- ChuckMcM 11y agoIt can also be a deflation hedge. Let's assume your bond has a -1% yield and we hit -5% inflation. At maturity you have more effective capital.
- iofj 11y agoIf we hit -5% inflation you will have counter party risk for the US government to take into account. Not that I think it'll destroy the US govt, but it would make them declare your treasury bond invalid (and many others) rather than cutting spending even more.
- ssanders82 11y agoI think the parent was answering the understandable question of why you would buy this instead of keeping it in cash.