Germany’s borrowing costs have fallen to their lowest level on record as Europe’s weak economic recovery persuades the region’s central bank to keep interest rates vanishingly low.
According to the Financial Times, the yield on Germany’s 10-year Bunds dropped 2.6 basis points to 1.12 per cent on Tuesday morning. Aside from distortions during the years of hyperinflation in the 1920s, this is Germany’s lowest borrowing rate since the early 1800s.
Across Europe, low interest rates have pushed government bond yields down to historic levels.
French, Spanish, Italian and Dutch government borrowing costs are now at rates not seen for hundreds of years.