FRANKFURT, Germany -- Investors are paying for the privilege to lend Germany money as they look for a safe haven from the financial and economic crisis hitting the rest of Europe.
Germany auctioned (EURO)5 billion ($6.14 billion) in two-year treasury notes Wednesday with an average interest rate of minus 0.06 per cent.
Investors see German bonds as a haven from the turmoil over too much debt in some of the 17 countries that use the euro as their currency.
Demand for such safe investments is strong because bonds of other governments are no longer seen as risk-free. Spain and Italy are struggling to borrow money at affordable rates, and Greece, Ireland and Portugal have needed bailout loans from the other countries.
