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’Negative yields at the house of Buba
Germany appears to have had a successful auction of six-month debt on Monday.
That said, there is a caveat. The auction for €3.9bn worth of paper achieved a bid-to-cover ratio of 1.8 versus a previous bid-to-cover of 3.8.
Le plan, negatifs taux d’intérêt – redux
Oh dear.
The ‘psychological shock’ of Wednesday’s moves by the Swiss National Bank to stem the rapid rise of the franc is already wearing off — at least in the FX market.
Frankly, that’s no surprise.
Le plan, negatifs taux d’intérêt
On Wednesday, the SNB unleashed it’s ultimate Swiss franc depreciation plan — le plan, negatifs taux d’intérêt — a.k.a the strongest signal yet that it is prepared to take interest rates negative to curb Swiss franc strength.
On the basics of how to tax banknotes
As documented by FT Alphaville, Willem Buiter has a thing for negative interest rates.
Most recently he’s been touting the idea again, this time in an opinion piece for the Wall Street Journal.
Leaving the economic case for negative interest rates aside for a minute,
Fed to cut funds rate to -5% by year end?
From an economic letter by Glenn Rudebusch, senior vice president and associate director of research at the Federal Reserve bank of San Francisco dated May 22 (H/T Greg Mankiw’s blog), emphasis FT Alphaville’s: