3 reasons Eurozone’s investors love Danish bonds [SoberLook]
July 15, 2012 Leave a comment
Would you pay Denmark’s government 0.6% to hold your money for two years? Sounds strange, but that’s exactly what investors are now doing. Denmark’s government paper yields just hit new lows. And it’s not only the short-term bills with the negative yield (short term bills sometimes go negative when investors seek immediate liquidity). The 2 and 3-year notes are now also comfortably in the negative territory as Eurozone’s investors simply can’t get enough.
|Denmark’s 2 and 3-year government yields|
Why do the Eurozone investors love Demark’s bonds so much that they are willing to lock in negative yields for 2-3 years?