http://theextinctionprotocol.wordpress.com/2012/07/09/debt-desperation-france-joins-germany-to-sell-t-bills-at-negative-yield/

[Faith In Him]

Debt desperation: France joins Germany to sell T-Bills at negative
yield
Posted on July 9, 2012 by The Extinction Protocol
July 9, 2012 – EUROZONE – France joined a handful of euro-zone
countries Monday in selling short-term debt at negative interest rates
as investors seek alternatives to expensive German and Dutch debt.
Earlier in the day, Germany’s six-month borrowing costs again turned
negative at an auction, after the European Central Bank slashed its
key policy and deposit rates to unprecedented levels last week. The
negative yield at Monday’s German auction, the lowest on record in
this maturity segment, means that investors effectively pay the German
state for the privilege of holding its debt. The Dutch State Treasury
Agency had already sold Treasury Certificates, or short-term debt, at
negative yields. Now the French government is doing so as well.
Germany sold 3.290 billion euros ($4.041 billion) of six-month
Treasury bills, known as Bubills, at an average yield of -0.0344%.
This is not only below the 0.0070% reached at the previous auction
June 11 but also lower than the -0.0122% seen at an auction Jan. 9.
France sold EUR3.917 billion of 13-week Treasury bills at an average
yield of -0.005%, down from 0.048% a week ago, and it sold EUR1.993
billion of 24-week Treasury bills at an average yield of -0.006%, down
from 0.096% last week. Yields on France’s 50-week Treasury bills also
came very close to zero, being allocated at an average yield of
0.013%, down from 0.163% a week ago. The German Finance Agency’s EUR4
billion offer attracted EUR5.480 billion in bids. The solid demand
signals that many investors are still willing to forego returns in
exchange for safety. While German yields have turned negative several
times in the secondary market, this is the second time so far this
year that borrowing costs were negative at a German debt auction. -WSJ