Germany issues 10-year bond

Frankfurt: Germany issued a 10-year bond at a negative interest for the first time on Wednesday, as fears about Brexit and economic worries cause investors to rush to the safety of German debt.

The German central bank or Bundesbank announced that it sold more than 4.0 billion euros ($4.5 billion) of a new 10-year bond with a yield of minus 0.05 percent.

In all, a total 4.783 billion in bids were received for the zero-interest rate bonds. And some 4.038 billion euros were allotted, the Bundesbank said.

The 10-year German government bond or "Bund" acts as a benchmark on the debt markets and regarded as one of the safest investments.

It is the first time that investors have accepted negative returns in the first issue of a bond, meaning they will pay for the privilege of owning rock-solid German bonds amid fears about the consequences of the British vote to quit the European union and economic worries.

While borrowers traditionally pay interest on the money they are loaned, in the face of heightened political and economic uncertainty, those interest rates have come down to record lows recently as investors flock to safe havens to park their cash.