Negative Bond Yields Show Euro Area Unhealthy, Rehn Says

Negative bond yields in euro-area countries highlight the weaknesses of the economy in the 17- nation currency region, European Economic and Monetary Affairs Commissioner Olli Rehn said.

“Negative bond yields are not a healthy phenomenon,” Rehn said in a Bloomberg Television interview today in New York. “They’re not good for Germany or Finland or Belgium. They are a sign that the euro-zone economy is not doing well.”

The Finnish commissioner said the key is to restore competitive balance in the currency union.

Belgium today sold three-month bills at a negative yield, meaning investors paid to lend the country money.

To contact the reporters on this story: James Hertling in Paris at jhertling@bloomberg.net; Sara Eisen in New York at seisen2@bloomberg.net

To contact the editor responsible for this story: James Hertling at jhertling@bloomberg.net

Press spacebar to pause and continue. Press esc to stop.

Bloomberg reserves the right to remove comments but is under no obligation to do so, or to explain individual moderation decisions.

Please enable JavaScript to view the comments powered by Disqus.