Germany's benchmark 10-year bond yield slid back into negative territory

That investors want to pay to lend their money to Germany is because German government bonds possess a number characteristics which are attractive for investors: they are extremely save. Investors can lend their money to the German government without being exposed to the risk that the country will default upon its debt. The risk that Germany will go bankrupt is namely incredibly small. The Netherlands is also a very safe haven for investors. Just like Germany, it has a very high solvency. However, its liquidity is not as high as is the case for our  eastern neighbors. As such, there is a difference between the German and Dutch government interest rates, but it is minimal. Even though there are big differences between countries such as Germany and the Netherlands on the one hand and Italy on the other, interest rates are globally relatively low because of the ageing population, many savings and few real, risky investments. As such, it looks like we are dealing with an inverted yield curve, and this rare type of yield curve is usually a predictor for a recession. Nevertheless, Sandra Phlippen says we should not be afraid of a recession. The interest rate can namely not be used as a clear signalling device any longer because of the quantitative easing programmes of the European Central Bank.