Advertisement
If you have a new account but are having problems posting or verifying your account, please email us on hello@boards.ie for help. Thanks :)
Hello all! Please ensure that you are posting a new thread or question in the appropriate forum. The Feedback forum is overwhelmed with questions that are having to be moved elsewhere. If you need help to verify your account contact hello@boards.ie
Hi there,
There is an issue with role permissions that is being worked on at the moment.
If you are having trouble with access or permissions on regional forums please post here to get access: https://www.boards.ie/discussion/2058365403/you-do-not-have-permission-for-that#latest

Who is buying Irish treasury bonds at negative interest rate and why?

  • 10-06-2020 10:43pm
    #1
    rookieMan
    Registered Users, Registered Users 2 Posts: 33 ✭


    This might have been asked before but I am really not able to find this answer. Irish government has recently issues 6 months bonds at negative interest rate. Why would anyone want to lose money buying these bonds? The duration (6 months) is so short that it even make sit hard to sell it in secondary market to profit off change in interest rates. If the banks are buying them, why not keep their money with themselves ?

    Example : https://www.rte.ie/amp/1130859/


Comments

  • #2
    Kilboor
    Registered Users, Registered Users 2 Posts: 1,224 ✭✭✭Kilboor


    rookieMan wrote: »
    This might have been asked before but I am really mot able to find this answer. Irish government has recently issues 6 months bonds at negative interest rate. Why would anyone want to lose money buying these bonds? The duration (6 months) is so short that it even make sit hard to sell it in secondary market to profit off change in interest rates. If the banks are buying them, why not keep their money with themselves ?

    Example : https://www.rte.ie/amp/1130859/

    Asset allocation for risky market plays from hedge funds and other investment entities.

    Currency plays, deflation (unlikely with the economic policies in place), more expensive to hold cash i.e. not taking any gambles during the crisis which a lot of investors are doing.


Advertisement