Trump praises Germany's negative bond yield as part of his bash at Fed

U.S. President Donald Trump. [File Photo: VCG]

The U.S. President Donald Trump is praising Germany's negative bond yield as part of his tactic to pressure the Federal Reserve to lower interest rates.

A tweet by Trump on Wednesday said Germany is actually getting paid to borrow money.

Last week, the German government sold 30-year bonds that don't have interest at all.

However, bidders were willing to pay more than the face value they would receive when the bonds mature, making the yield negative.

Ding Heng spoke with Professor Liu Baocheng from University of International Business and Economics, and Andy Mok, Senior Fellow with Beijing-based think tank Center for China and Globalization.