DENMARK has revealed that it saw a surge in demand for its debt from international investors last year, making it the latest non-Eurozone state to cash in on the hunt for a “safe haven”.
The Danish central bank said that over a third of the country’s outstanding debt is now owned by foreign buyers, up from 27 per cent in 2010. The country paid negative interest rates to sell bonds for the first time last week.
The European Central Bank (ECB) will hope its efforts to flood banks with liquidity will lure some money back into Eurozone bonds. Euro bank debt costs fell sharply yesterday: the three-month European Interbank Offered Rate (Euribor), a key benchmark, fell 13 basis points to 1.343 per cent. And the ECB said that its deposits fell €30bn to €414bn on New Year’s Day.