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