Danes Balk as Debt Yields Turn Negative on Foreign Demand
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A surge in demand for Danish bonds and bills from investors seeking to escape Europe’s debt crisis is allowing the Nordic nation to get paid to borrow. Local buyers aren’t as enamored.
The country last week sold 2.02 billion kroner ($351 million) in two-month and five-month bills at negative yields. A central bank report yesterday showed foreign ownership of government debt rose to 35 percent in November, the most since October 2000, as investors outside Denmark raised their holdings by 49 percent to 267 billion kroner from a year earlier.