Germany Is Getting Paid To Borrow Money Again

The amazing collapse in German bond yields is continuing. Today, five-year bonds (or bunds) have a negative nominal return for the first time ever.  That means that investors buying a 5-year bond on the market today will effectively be paying the German government for the privilege of owning some of its debt.  This has been happening for some time now. In 2012, people were amazed when 6-month bund yields went into negative territory. In August, the two-year yield went negative too. Less than a...