- A number of sources report Germany tomorrow will offer €2B of zero-coupon, 30-year paper, with a 0% coupon.
- A buyer at par could thus expect thirty years from now to receive back exactly what he/she paid, and not a dime more. The current yield on German 30-year bonds is -0.04%.
- A zero-coupon, 0% long-term bond is not without precedent - Germany sold 10-year, 0% paper in April 2015. The lack of demand at that sale is sometimes credited with sparking a sizable selloff in bonds, but that was before the ECB moved rates into negative territory and bought up every asset in sight.