by Wolf Richter
A propitious day in our era of negative-yield pandemic.
For the first time ever, Germany sold 10-year bonds with a zero-percent coupon today. It sold these “Bunds” at a price that was above face value. So not only do investors not get a coupon payment, however minuscule, they’re also not getting all their capital back when the bonds are redeemed in 10 years at face value.
So on this propitious day in our era of negative-yield pandemic, these Bunds in the €4.038 billion issuance produced a negative yield of -0.05% and no coupon payments.