German bond yield turns negative

FRANKFURT - Agence France-Presse

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Germany paid a negative return to investors at a debt auction for the first time, highlighting the status of Europe's biggest economy as a safe haven for investors.

The Bundesbank, which handles German federal debt auctions, said in a statement it sold 3.9 billion euros ($5 billion) of six-month Treasury bills at an average yield of minus 0.0122 percent.

Negative yields effectively mean that investors are willing to pay the German government to take their money.

There was strong demand for the issuance, with investors submitting a total 7.08 billion euros in bids for the 4 billion euros in bonds on offer.