Shakin’ All Over! German Yield Curve Completely Negative Yield As Germany Issues €869M Zero-coupon Bonds At -0.11% (Tried To Sell €2B)

Things are getting crazy in Europe, particularly in Germany and Denmark,

As Brexit approaches, Germany is desperately trying to save their economy (or at least their banking system) by borrowing at negative rates for 30-years.

The German government sold 869 million euros of 30-year bonds with a negative yield, for the first time ever, adding to the world’s growing $15 trillion in existing negative yielding debt.

The bund, set to mature in 2050, has a zero coupon, meaning it pays no interest. Germany offered 2 billion euros worth of 30-year bunds, and investors were willing to buy less than half of it, with a yield of minus 0.11%.

Here are the German sovereign yield curve (blue) and the Danish sovereign curve (green).

gerden.png

Of course, the US Treasury curve has the same “bucket” shape as Germany and Denmark (as well as numerous other nations).

usyctrump.png

The US Treasury 10Y-3M curve slope is now -40 BPS.

EClYOPDXYAE2g20

While not totally submerged, Sweden, France and the UK all have the bucket shape.

ukswedenfrance.png

Just so we understand, it’s not just Europe that is slowing. China is slowing too (and before the tariff war).

chinagdp

Sovereign yield curves are Shakin’ all over.

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