Borrowing costs across Europe slid further this week, amid raised hopes of a U.S. Federal Reserve-style quantitative easing (QE) program to boost the euro zone’s struggling economies.
For the first time, yields on several euro zone sovereign bonds turned negative–meaning that investors are effectively paying to governments to hold their money.
Finnish, Dutch, Belgian and Austrian 2-year bond yields all turned negative for the first time this week, hitting record lows. German 2-year Schatz and 3-year Bunds also yielded under 0 percent.
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