Credit Rating and German Bonds

brexit concerns: That means that buyers, who would traditionally expect a return on their investment, are effectively paying to own the notoriously solid securities, according to Deutsche Welle. Amid Brexit concerns and volatile stock markets worlwide, investors are increasingly shifting their money to safe havens, even if it comes at a price. The Bundesbank said it had sold more than 4.0 billion euros worth of bonds at a yield of minus 0.05 percent. Germany enjoys a top-notch triple-A credit rating and has a reputation for paying back its debt timely. This means investors can easily sell on their German bonds in the current climate. "As long as the ECB is pumping several billions into the market every month, there will always be a taker," Elmar Völker, an analyst at LBBW, told news agency Reuters. Quantitative easing effects Interest rates on sovereign debt have been falling for some time, as the European Central Bank pursues a massive quantitative easing program, in which it buys eurozone countries' bonds in an attempt to push up inflation and boost the eurozone economy. (news.financializer.com). As reported in the news.