A depth record for the ten-year rate. © anp.
The yield on Dutch government bonds with a maturity of 10 years, today fell to its lowest level ever. That turned out data from Bloomberg.
The yield on ten-year bonds ended the day at 0.98 percent. Early this year, that rate was still at 2.2 percent. A month ago yielded a ten-year bond yield of 1.2 percent.
The interest rates on the same type of loans from Germany, Finland, France and Austria fell to record lows Tuesday. German rates thus arrived at 0.8 percent, the French rate at 1.2 percent. Comparable Spanish yields fell to just over 2 percent. During the debt crisis that interest peaked even at more than 7 percent.
The value and yield of a bond move in opposite directions. Declining interest rates indicates thus a higher value and a growing demand for the relevant debt securities.
The strong demand for the bonds depends on the meager prospects for the international economy, which led last week for heavy losses the equity markets. It has also led American government bonds again more popular. The ten-year rate of USA Tuesday dropped to 2.2 percent.
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