Indeed!

Eurozone and Japanese treasuries are so toxic that investors have been running away from these treasuries seeking paltry but at least positive yielding US bonds.These investors gamble on capital gains on the secondary market and when the bonds near maturity they sell them to the commercial/investment banks who in turn sell them to the European and Japanese central banks to eat the losses at maturity.Also,these investors are forced by law to allocate a specific percentage of their portfolio to bonds so have no choice to buy them but try their best to sell them before maturity.So how did bonds become negative yielding?In the post 2008 meltdown and the 2010-2012 European sovereign debt crisis,bond yields rose so rapidly as investors dumped them and to prevent the collapse of these treasury markets,the central banks stepped in to buy them as a last resort.So many bonds were bought by the central banks that yields flipped to negative.The European Central Bank holds 1/3 of the entire Eurozone treasury market and the Bank of Japan holds over 1/2 of Japanese bonds.

As a consequence,banks especially in Europe have been reeling from negative interest rates.Banks in Italy,Spain,Greece are perpetually in distress needing central bank bailouts.Germany's largest bank ie Deutsche Bank is a massive loss making bank and stock had gone down over 90% ever since the 2008 pre meltdown time.Also,some European Banks are charging high net worth accounts a negative rate for depositing money with them.This is over and above the monthly ledger fee that all banks in the world charge depositors.Thus some investors prefer to keep cash "under the matress" than deposit into the banks and be charged.In Japan safes sales are hot as they prefer keeping cash in safes as opposed to being charged to deposit in the bank








https://www.reuters.com/...ters-poll-idUSL3N16W2Y8


Also,some Danish banks are offering negative interest rate mortgages.Now thats just crazy.Ok,its not entirely negative as there are overhead bank charges but the base rate is negative




https://www.cnbc.com/201...ive-interest-rates.html

So banks charging customers for deposits thus clients flee from depositing money in the bank,then banks offer very low interest rates for loans like mortgages and even negative rates in Denmark so isnt it obvious why banks especially in Europe are suffering as they cant make money.Look at Germany's largest bank ie Deutsche Bank stock price




Mad world post 2008 financial crisis

@amorphous
Exactly.You nailed it completely.But US bond market especially the 10 year note is the deepest,most liquid
and apparently "safest" asset class backed by the full faith and credit of the US superpower state and the Fed Quantitative Easing shenanigans that creates new dollars from nothing and buys the bonds to keep interest rates suppressed hence the government remains solvent.The US wants to spend 750 billion on the military.No worries,treasury issues the bonds sells them to the Wall Street Banks who then sell to the Fed that buys from newly created dollars and walaa a new aircraft carrier,F-35 jet fighter and so forth.If rates in the developed world went even to 5%,they would collapse as interest payments would be too high.Fed raised rates to just 2.5% in 2018 and the stock market fell 20% in 3 months and junk bond market completely froze up with no new bond issuance for 41 days.The European and Japan central bank rates are negative and they cannot dare take them back to positive.That's why central banks have to keep buying government treasuries to keep rates low and borrowing even cheaper and in the case of Denmark borrowing costs are negative.

Why like this now?
Kwanza the coupon is low,10% instead of 12%...then apply 10% tax like if it were a Treasury bond.
Useless nuts

Jubilee will come to tax every single cent you have