Negative interest rate policy and the influence of macroeconomic news on yields
A negative interest rate means banks would pay a small amount of money each month to park some of their money at the Fed – a reversal of how a bank typically works. Banks, in turn, could pass those interest costs to customers by charging for deposits. How bonds with negative yields work and why this growing phenomenon is so bad for the economy. offer negative interest rates. The good news is that U.S. Treasurys, while hovering near all