German borrowing costs reach record low

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.

Source:Punch News

Advertisements

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s