Free Republic

The yield on the 10-year benchmark German bund fell into negative territory for the first time ever on Tuesday morning, amid global growth concerns and jitters over the U.K.'s upcoming referendum on its European Union membership. At around 8.30 a.m. London time, the yield hit zero and briefly fell into negative territory as investors continued to flock to safe-haven assets. Bond prices and yields move in opposite directions and a negative yield implies that investors are effectively paying the German government for the privilege of parking their cash. By the end of the European trading day, the yield was still...

The price of rock-solid German government bonds has rocketed over fears of a possible Brexit. Interest rates have fallen to record lows meaning investors are looking for safe havens to park their cash. As investors flock to place money in German government 10-year bonds their price has risen The bonds, which are considered a benchmark of financial security, known as Bunds, are now not paying any money back because demand is too high. Today the Bund yielded minus 0.028 percent - meaning it was costing anyone who held the investment.