A near-record single-day plunge in rates for Switzerland’s 2Y interest rate delivered the outstanding -43.1bps this morning.
At the same time, the German 2Y also marked record low interest rates at -5.2bps.
In fact, as it could be observed interest rates are negative. For binary option traders and analysts this suggests that investment yields in some cases could be bringing in losses than generating returns. Thus, from an economic standpoint, investors are better-off to bit in the binary markets where positive returns could take place immediately. Unlike, other financial instruments where with the negative interest rates loses are more likely to be registered.
On the other hand, gold is performing great at over $1,585.
Source: Chart Bloomberg
