People are loaning their money to the Irish government for ten years for nothing ,no interest ....The market interest rate - or yield - on Ireland’s 10-year bonds fell below zero percent for the first time on Monday, as investors globally piled out of stocks and into government bonds as trade relations between the US and China worsened.
The yield on 10-year Irish bonds, which had started the year at 1 per cent and were as high as 14 per cent at the height of the financial crisis in 2011, fell to minus 0.001 per cent in early trading on Monday. However, the yield subsequently picked up into marginal positive territory.
There is an inverse relationship between the price of bonds and bond yields. Government bonds are seen as a safe haven for investors during times of market volatility.
Imagine you need a university degree to think loaning money to the Irish government for ten years for free not even inflation proofed is a good idea .
