Why do savers in the euro zone accept a zero yield on government bonds?
Savers in the euro zone (and also non-residents) are buying euro-zone government bonds with virtually zero and even negative yields. How is that possible, why do they not prefer to hold money? They must believe that there is no risk that countries will default, and no risk of interest rates rising; Risk aversion for other assets (equities, real estate, bonds in foreign currencies other than the euro) must be high.