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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.

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