China is Among Countries With Negative Interest Rate

China is Among Countries With Negative Interest Rate China is taking its place among the countries with negative interest rate. The country has issued its first negative-interest bond in Euro with the auction held this week. With the eurobonds it exported, China was among the countries with negative interest rates. The size of the auction held this week by the Ministry of Finance of China amounted to approximately 4 billion Euros, while bonds with maturities of five, ten, and fifteen years were issued in the auction. According to the information in Bloomberg, the bond with a five-year maturity of 750 million Euros was recorded as the first negative-interest bond issued in China's history after receiving a -0.125 percent interest offer. While the borrowing cost of China increased in the domestic market, such an issue with negative interest had a shock effect in the markets. The yield on China's ten-year government bonds in yuan is now 3.35 percent, the highest in the past 18 months. The world's second-largest bond market has come under pressure in recent months, with diminishing hopes for an additional financial support package and companies going into default.