Bond Market – Euro Style
Can’t get enough of low yields? Have you tried Europe lately? Bond investors in the U.S. continue to struggle with finding acceptable yields for their money. While a 2% yield for a U.S. 10-year Treasury doesn’t seem that attractive, it could be worse. Take a look at the plight of the European bond investor searching for yield. There is always the steadfast German bond market where a 10-year investment in government bonds will pay 0.31%. You could travel over to France and buy some 10-year French bonds to earn 0.58%. And maybe for some added diversification why not pick up some bonds from the Netherlands where the annual return is 0.36%. But if you are really not happy with these returns, there is always the option of adding some higher yielding bonds from Italy and Spain that are earning 1.34% and 1.26% respectively. Are you kidding me! The Spanish government can borrow money cheaper than the U.S. government? Yes, my intrepid bond buyer, they sure can.