{"id":179,"date":"2016-07-14T06:07:37","date_gmt":"2016-07-13T19:07:37","guid":{"rendered":"http:\/\/www.bleufair.com\/?p=179"},"modified":"2022-04-10T09:21:17","modified_gmt":"2022-04-09T22:21:17","slug":"germany-sells-first-ever-bonds-with-negative-interest-rates","status":"publish","type":"post","link":"https:\/\/www.bleufair.com\/?p=179","title":{"rendered":"Germany sells first ever bonds with negative interest rates"},"content":{"rendered":"<p><strong>Germany issued a 10-year bond at a negative interest for the first time on Wednesday, selling more than \u20ac4.0 billion with a yield of minus 0.05 percent, the German central bank or Bundesbank said.<\/strong><\/p>\n<p>Why would anyone buy a bond with negative returns when he can just keep cash?<br \/>\nWhole central banking is turning senseless.<\/p>\n<p>First theory is central banks will buy back their bonds before expiry to push down interest rates&#8230;.allowing bond buyers to exit at a profit.<\/p>\n<p>Europe is in deflation, so say price of my penthouse I bought in London was $10million in early 2016&#8230;but at the end of 2017, it becomes $8million . With Brexit, it could be worse ,,,maybe less than half price like $3million !!!!<br \/>\nIf I have cash of $10million, I will not park it in the guniang lose money London penthouse.<br \/>\nI cannot park it in the banks as well due to negative rates.<br \/>\nSo, $10million is not a lot but IT IS STILL MONEY, correct ? I cannot put it under my bed.<br \/>\nSo&#8230;conclusion, I buy bonds at $10million early 2016, get back $9.95million at the end of 2017. At least it is a contract, so the outcome is definite.,,I know I will get back $9.95milloon..It is really about risk assessment.<\/p>\n<p><!--more-->http:\/\/www.thelocal.de\/20160713\/germany-makes-investors-pay-interest-on-bonds<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Germany issued a 10-year bond at a negative interest for the first time on Wednesday, selling more than \u20ac4.0 billion with a yield of minus 0.05 percent, the German central bank or Bundesbank said. Why would anyone buy a bond with negative returns when he can just keep cash? Whole central banking is turning senseless. [&hellip;]<\/p>\n","protected":false},"author":11,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[14],"tags":[],"class_list":["post-179","post","type-post","status-publish","format-standard","hentry","category-finance"],"_links":{"self":[{"href":"https:\/\/www.bleufair.com\/index.php?rest_route=\/wp\/v2\/posts\/179","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.bleufair.com\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.bleufair.com\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.bleufair.com\/index.php?rest_route=\/wp\/v2\/users\/11"}],"replies":[{"embeddable":true,"href":"https:\/\/www.bleufair.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=179"}],"version-history":[{"count":1,"href":"https:\/\/www.bleufair.com\/index.php?rest_route=\/wp\/v2\/posts\/179\/revisions"}],"predecessor-version":[{"id":180,"href":"https:\/\/www.bleufair.com\/index.php?rest_route=\/wp\/v2\/posts\/179\/revisions\/180"}],"wp:attachment":[{"href":"https:\/\/www.bleufair.com\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=179"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.bleufair.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=179"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.bleufair.com\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=179"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}