THE LEX COLUMN: A step closer to the tipping point
Germany auctions 30-year debt with an interest rate of zero
Which is worth more — a euro today, or a euro in three decades from the Berlin government? Duh! The latter, obviously.
On Wednesday Germany auctioned 30-year debt with an interest rate — or coupon, in the jargon — of zero. Investors who paid more than par value for the bunds guaranteeing a loss if held to maturity, were behaving entirely rationally.