by Wolf Richter
Among the goodies: “reverse Yankee” landmines.
When a central bank like the ECB imposes negative interest rates along with QE on its bailiwick, funny things start to happen.
Investors become so eager to get any kind of visible yield that they will do the craziest things. They’re now chasing €3 billion of 50-year bonds that the French government placed today. The yield? 1.916%.
These 50-year bonds are bought by institutional investors who, in normal times, would have been institutionalized.