Why bond yield can be negative?

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You may ask what kind of idiots will buy a government bond with negative yield?

It means you lend your money to government for a long locked period and pay them interest at the same time. Will you do this?

No, you won’t. But central bank will do cause they can print money and lend to government like a crazy without any cost.

That’s why bond yield can be negative. No surprise at all!

 

 

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