Germany borrows at rock-bottom 0.007 percent
FRANKFURT, Germany (AP) — Germany has borrowed again at rock-bottom interest rates.
The government auctioned €4 billion ($4.99 billion) in six-month treasury bills at an average annual interest rate of only 0.007 percent.
People are willing to loan money to Germany at such low rates because its debt is seen as having a very low risk of not being paid back. German debt has therefore been used as a safe-haven for investors to park money. That is even though the rate is so low they are in essence paying the government to loan it money.
Inflation in the eurozone was 2.4 percent in April, meaning investors likely will be paid back in money that's worth less than what they loaned.