Latest / The Fiscal Policy Podcast with Fexingo: Government Budgets, Stimulus, and Public Spending
Why Government Bonds Sometimes Pay Negative Interest
In this episode of The Fiscal Policy Podcast, Lucas and Luna explore the strange world of negative-yielding government debt. They explain why investors sometimes pay governments for the privilege of lending them money, using Germany's 2019 five-year bond auction as a case study. The conversation covers the mechanics of bond yields, the role of central banks and quantitative easing, and the broader economic signals negative rates send. They also discuss who actually buys these bonds and why, from pension funds to foreign central banks. The episode digs into how negative yields challenge…
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