Finland's 10-year bond yield turns negative

Finland became the third euro zone sovereign to see its 10-year borrowing costs turn negative on Tuesday as part of a broad rally in euro zone bonds.

Investors are now willing to pay Finland to lend to it for 10 years, a boon so far only granted to Germany and Netherlands within the single currency bloc, and only to a handful of nations globally.

The yield on Finland's 10-year bond fell 3 basis points to minus 0.023 per cent on Tuesday.
The yield on Finland's 10-year bond fell 3 basis points to minus 0.023 per cent on Tuesday. Photo: Jussi Hellsten

Euro zone government bonds, seen as a safe haven in times of stress, have rallied in recent days as concerns over Europe's financial sector has hit stock markets.

The yield on Finland's 10-year bond fell 3 basis points to minus 0.023 per cent on Tuesday, as other euro zone equivalents fell 3-4 bps.

Germany's 10-year bond yield fell to its lowest since August 15, down 4 bps on day at minus 0.15 per cent.