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Negative-Yield Deutsche Bahn Bonds Find Buyers

State-owned German rail operator becomes first non-financial company to sell euro bonds with negative yield.

By Karl Lester M. Yap and Sally Bakewell, Bloomberg | Updated on July 13, 2016

Funds were the biggest buyers of the first negative-yielding euro bonds sold by a non-financial company, highlighting how central bank stimulus is distorting markets.

Deutsche Bahn AG allocated 57% of the 350-million euro ($388 million) bond sale to funds, while banks bought 23%, according to a person familiar with the matter who asked not to be identified because they aren’t authorized to discuss the offering. Investors in Germany and Austria bought most of the bonds.

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