- In the first transactions of this kind, BoJ purchased Japanese government bonds (JGBs) from banks at a negative interest rate.
- Earlier Thursday, the yield on Germany's two-year bond actually went negative, touching -0.004%. In other words, investors are effectively paying the German government to hold their money.
- The yield on the 5 year TIP (US treasury inflation protected security) on 10-22-14 was -.04%.
- At its September 30th meeting, the Reserve Bank of India left the repo rate on hold at 8 percent, waiting for more evidence that inflation rate is slowing.
Three of the top 5 economies in world have recently had bonds with negative yields. This is more like the days of old when people were charged DEMURRAGE fees for storing their excess crops--which would equate to savings and investments today. It was also at this time when some of the most fantastic European buildings were built and which continue to create value to the local communities hundreds of years later.
I wonder what these long term projects would look like in today's quarter-to-quarter markets?