The Czech Finance Ministry sold CZK 3.75bn worth of government bonds with a negative yield for the first time on Wednesday. The yield was only 0.001 percent, but investors appear willing to pay the Czech government for the right to park their money in the instrument. Bonds with negative yields have been sold in Germany, Switzerland and Sweden, writes Hospodářské noviny.
Marek Dřímal, an economist at Komerční banka, told the paper that the change in investor behavior stems from the Czech central bank intervention, which weakened the Czech crown against the euro. “There is a huge oversupply of Czech crowns on the market,” he says.
