Dutch interest rates historically low

Investor confidence in Dutch public finances still appears to be very high. Due to the high demand for investments in the Dutch government debt, the interest rate on the Dutch 10-year government bond has fallen to the lowest level ever.

As a result, the yield has dropped to 1.48 percent for 10-year government bonds. Just like the German interest rate, the Dutch interest rate has been low for years due to the problems that occur in the southern European countries. The advantage for the Dutch government is that they can borrow money exceptionally cheaply on the global financial markets.

The interest rate in Germany is even lower than in the Netherlands. These yields for 10-year bonds fell to 1.3 percent. The 10-year yields in Spain and Italy stood at 5.25 and 4.5 percent respectively. For these countries, interest rates were above 7 percent less than a year ago.