Germany becomes second G7 nation to issue 10-year bond with negative yield

Reuters reports:

Germany on Wednesday became the second G7 nation after Japan to issue 10-year bonds with a negative yield, highlighting a willingness among investors to hold top-rated debt even as yields across the world collapse.

Germany's 10-year government bond yield turned negative for the first time at an auction, fetching the lowest average yield on record for such paper at -0.05 percent.

Ten-year yields in Germany - the euro zone's benchmark issuer - have been trading below zero percent in the secondary market for the past three weeks and hit a record low last week at around minus 0.20 percent.

The negative yield at Wednesday's auction means investors buying the 10-year Bund and holding it to maturity would receive back less than they paid. That's a trade-off many investors are willing to make to hold safe-haven German paper against the backdrop of global uncertainty, unprecedented monetary stimulus from the European Central Bank and a tepid inflation outlook.

The central bank scam.