Friday, May 25, 2012

German government 10 year bond yield hit 1.4%

Bond market is hinting at deflation. If you lend your money to German government for 1.4% a year, you must be expecting an inflation over 10 years that is less than 1.4%. That is an inflation rate considered by most central banks in the world as too low to foster growth. Is the world economy heading toward another recession?

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