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January 7, 2015

Japan and Germany Lead the Race To Negative Yields

By Mike "Mish" Shedlock

Curve Watcher's Anonymous has been watching the race to zero or negative yields in government bonds. 

In the race to see which country will be first to hit zero percent or below on 10-year government bonds, Japan is currently in the lead at 0.295%, Germany is in second place at 0.447%, and the US trails mightily at 1.963% 

Japan 10-Year Bond Yield Germany 10-Year Bond Yield 

Japan is in the lead, but the smart bet is on Germany. The reason is German rates are negative everywhere from 1-month to 5-years. 

Germany 5-Year Bond Yield 

Blue Ribbon Winner Announced

Germany wins the coveted gold medal in the prestigious 5-year yield category in a stunning come-from-behind victory after trailing by as much as 130 basis points (1.3 percentage points) as recently as 2010.

About The Author - Mike Shedlock / Mish is a registered investment advisor representative and he writes at Mish's Global Economic Trend Analysis (EconMatters author archive here)

The views and opinions expressed herein are the author's own, and do not necessarily reflect those of EconMatters.

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