
$5.5 Trillion in Government Bonds Now Have Negative Yields - randomname2
http://www.ft.com/fastft/2016/01/29/record-5-5tn-in-govt-bonds-trade-at-negative-yields/
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lobster_johnson
Going via Google circumvents the paywall:

[https://www.google.com/search?num=30&safe=off&q=%245.5+Trill...](https://www.google.com/search?num=30&safe=off&q=%245.5+Trillion+in+Government+Bonds+Now+Have+Negative+Yields+site%3Aft.com&oq=%245.5+Trillion+in+Government+Bonds+Now+Have+Negative+Yields+site%3Aft.com&gs_l=serp.3...3777.4967.0.5022.12.10.0.0.0.0.173.652.0j5.5.0....0...1.1.64.serp..7.0.0.-klpEkWqIes)

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venning
Click on the "web" link above and then click on the FT.com result. (You may
also need to load that link in an Incognito tab.)

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iofj
In case anyone wonders who would buy these and why, the government has made it
mandatory for banks to buy these themselves if they have deposits or loan. So
this is effectively a tax on banks.

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ChuckMcM
It can also be a deflation hedge. Let's assume your bond has a -1% yield and
we hit -5% inflation. At maturity you have more effective capital.

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iofj
If we hit -5% inflation you will have counter party risk for the US government
to take into account. Not that I think it'll destroy the US govt, but it would
make them declare your treasury bond invalid (and many others) rather than
cutting spending even more.

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Zyst
Behind a paywall

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stephenitis
Can pay wall sights be tagged so that... i don't click on those links?

