Germany sells for the first time 30-year bonds offering negative returns

Germany sold for the first time a 30-year debt with a negative return, investors desperately seeking safe assets, betting that further declines in yields would boost the value of bonds in the future.

Investors who buy negative-yielding debt securities recover less than what they have paid if they keep up to the date of maturity. At the Wednesday sale, Germany borrowed 824 million euros ($ 914 million) in the form of bonds without interest. The bonds were sold slightly above face value. Thus, when they come to maturity in 2050, Germany will repay 795 million euros.

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