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Even Greece Is Getting Paid to Borrow Money in Debt Markets

  • Negative yields reach euro area’s most-indebted nation
  • Current yields don’t reflect bond risks, Newton’s Day says
A supporter rings a bell while watching exit poll results at the New Democracy party election stand in Athens, Greece on Sunday, July 7 2019.
Photographer: Konstantinos Tsakalidis/Bloomberg
Updated on

Greece, the one-time bond-market pariah at the heart of Europe’s sovereign debt crisis, just completed a transformative journey by joining the region’s negative-yield club.

Investors are now paying for the privilege of lending it cash. A sale of 487.5 million euros ($535 million) of 13-week bills Wednesday drew a yield of minus 0.02%. Greece joins the likes of Ireland, Italy and Spain benefitting from the European Central Bank’s supportive monetary policy and deepening fears of a global recession.