France sells bonds at negative interest rate

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PostMon Jul 09, 2012 7:50 pm » by domdabears


PARIS (AP) -- France's government has sold short-term bonds at negative interest rates for the first time, a sign of investor confidence despite concerns about French debts and the wider eurozone.

Despite the dropping rates, France's economic outlook is stagnant. President Francois Hollande said Monday that growth in the first half of this year is expected to be "nil."

Yields, or borrowing rates, have been falling on French medium and long-term bonds in auctions over the past couple of months, as investors flock to the perceived safety of Europe's larger economies.

In a sale Monday, the treasury sold three-month bonds at -0.005 percent, and six-month bonds at -0.006 percent. The treasury agency says it's the first time they have registered negative yields.

http://hosted.ap.org/dynamic/stories/E/ ... 9-10-45-53
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