No, that’s not the yield on the U.S. 10-year bond (rapidly dropping towards 2%).

minnowIt’s the yield — as of this morning — on Germany’s 10-year bond, regarded as an even safer bet than U.S. debt.

Aside from a little confusion (I thought Deutsche marks were replaced by euro’s?), it raises this question:  if at least some home Sellers will accept bitcoin, you’d think that German currency would be an even better alternative.

Sample Numbers

Exactly how low is an interest rate of .57%?

If you bought the equivalent of $100 of German 10-year bonds today, by this time in 2024, you’d have earned $5.85 in interest.

Compounded.

P.S.: If it doesn’t make sense to save at such paltry rates, what should you do?

Borrow (or refinance) — prudently, of course.

See also, “Rational Homeowners’ Response to Global Financial Turmoil.

About the author

Ross Kaplan has 19+ years experience selling real estate all over the Twin Cities. He is also a 12-time consecutive "Super Real Estate Agent," as determined by Mpls. - St. Paul Magazine and Twin Cities Business Magazine. Prior to becoming a Realtor, Ross was an attorney (corporate law), CPA, and entrepreneur. He holds an economics degree from Stanford.

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