Chancellor Angela Merkel of Germany and PresidentNicolas Sarkozy of France met Monday to discuss their next steps in combating the sovereign debt crisis that has destabilized Europe.
Even as the leaders promised quick action to stem the crisis, investors signaled the depth of their concern when they bought German debt at a negative interest rate for the first time ever.
Germany joined the Netherlands and Switzerland on Monday as perceived havens where customers of short-term debt are willing to lose money in return for shelter from upheaval and from the possibility of even greater losses. In an auction of six-month bills, investors agreed to take less money back half a year from now, or a negative yield for German debt.
Speaking at a news conference after the two leaders met at the Chancellery in Berlin, Mr. Sarkozy acknowledged the uncertainty in the markets, saying, “The situation is very tense, very tense.” Read more at NYTimes
Even as the leaders promised quick action to stem the crisis, investors signaled the depth of their concern when they bought German debt at a negative interest rate for the first time ever.
Germany joined the Netherlands and Switzerland on Monday as perceived havens where customers of short-term debt are willing to lose money in return for shelter from upheaval and from the possibility of even greater losses. In an auction of six-month bills, investors agreed to take less money back half a year from now, or a negative yield for German debt.
Speaking at a news conference after the two leaders met at the Chancellery in Berlin, Mr. Sarkozy acknowledged the uncertainty in the markets, saying, “The situation is very tense, very tense.” Read more at NYTimes
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