Negative-Yield Bonds

• China recently sold negative-yield debt for the first time, and this saw high demand from investors across Europe.At a time when the world is battling the Covid-19 pandemic and interest rates in developed markets across Europe are much lower.
• A negative bond yield is when an investor receives less money at the bond's maturity than the original purchase price for the bond.These are generally issued by central banks or governments, and investors pay interest to the borrower to keep their money with them.

Benefits

• Negative-yield bonds attract investments during times of stress and uncertainty as investors look to protect their capital ....