Germany borrows again at negative rates

AP News
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Posted: Aug 27, 2012 7:10 AM
Germany borrows again at negative rates

FRANKFURT, Germany (AP) — Germany has borrowed money again at negative interest rates, meaning investors are taking a loss for the chance to hold the super-safe securities during the eurozone debt crisis.

The government sold €1.975 billion ($2.47 billion) in treasury bills Monday with an average yield of minus 0.0246 percent.

It's happened several times. Germany sold one-year bills in July at minus 0.054 percent.

The negative rates mean investors get back slightly less money than they invest. It's a price some are willing to pay to put money in safe-haven bonds that have little risk of not being paid back in the climate of fear created by the eurozone debt crisis.

Troubled Spain is paying over 3 percent for one-year borrowing, reflecting fears of default.