German government gets paid for debt as Brexit fears drive market

  • 2/5/2023
  • 16:48
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Frankfurt, Ramadan 9, 1437, Jun 14, 2016, SPA -- The German government is getting paid for the first time ever to take on 10-year debt as investors flock to safe bonds ahead of next week's election that could see Britain exit the European Union, dpa reported. Yields on 10-year German government bonds, the nation's main tool for financing its debt, dropped to -0.03 per cent on Tuesday, allowing the government of Europe's largest economy to demand a fee from investors that want to purchase the bonds. Investors generally receive a positive interest payment when they purchase a bond, rather than paying a negative interest rate. "Uncertainty surrounding a possible Brexit [British exit from the EU], has contributed massively to the current moves, pushing investors into the safe haven of German bonds," DekaBank chief economist Ulrich Kater said. In addition to Brexit fears, the high demand for government bonds was also due to the ultra-loose monetary policy of leading central banks, Kater said. -- SPA 20:27 LOCAL TIME 17:27 GMT www.spa.gov.sa/w

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