If you issue debt at non-positive yield, then there is no interest on your debt to offset with the yield from US bonds.
replyI don't understand. Why would anyone buy their bonds when the US bonds yield more?
replyThe issuer of debt is the seller of the bond.
replyThat doesn't the answer the question of "who is buying these bonds instead of US Treasuries?"
replySomeone who is betting that the negative yield changes favourably. The bet is the same in positive yield regimes as well. This could happen due to a combination of deflation forecasts increasing and expectations of interest rates being lowered even further.
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