Courtesy of Mish.
As of the end of Monday January 19, 2015, European 10-year yields are as follows:
- Germany 10-Year bond yields 0.441%
- France 10-Year bonds yields .641%
- Spain 10-Year bonds yields 1.526%
- Switzerland 10-Year bonds yield -0.074%
At least the first three are positive.
Congratulations (of sorts) to Switzerland for winning the race to negative yields on 10-year government bonds.
As of today, you can pay Switzerland 0.074% for the privilege of lending to the Swiss government for 10-years.
It was a hard-fought battle, but last week in response to the euro peg removal, Swiss 10-Year Govt Bond Yield Goes Negative for First Time Ever.
Last week was the first time that the benchmark borrowing costs of a developed economy’s government has gone negative for a 10-year duration.
Swiss LIBOR Hits Record Low -0.72 Percent
Inquiring minds may be wondering about short-term bank-to-bank lending. If you are in that group, please consider Swiss LIBOR Hits Record Low -0.72 Percent
The three-month benchmark Swiss bank-to-bank Libor lending rate fell to a record low of minus 0.372 percent on Thursday after the Swiss National Bank cut interest rates and abandoned its cap on the franc.
The SNB cut the interest rate by 0.5 percentage points to 0.75 percent on sight deposit account balances — cash commercial banks and other financial institutions hold with the central bank — above a certain threshold.
also expanded its three-month Libor target range to -1.25 percent and -0.25 percent from the previous range of -0.75 percent to 0.25 percent.
Blue Ribbons Galore
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