LAST week, while our attention was diverted, something amazing happened. In effect, global investors paid the German government to borrow their money - and return it in 10 years' time.

Sure, there was a catch. The investors bought inflation-indexed bonds, which means the money they get back in 2022 will have grown to match inflation in the meantime. If inflation in Germany in the next decade is the same as in the previous one, that means if they invest €10 million ($A12.8 million), they'll get back €11.675 million. But in 2022, that will buy them only what €10 million buys them now.

And to park their money like this, investors paid the German government 0.24 per cent of the amount they invested: €24,000 for every €10 million. Imagine if the Commonwealth Bank or NAB were to pay us to borrow money from them, and then we eventually pay them back just the amount they lent, plus inflation. Any volunteers?

It shows you how fear has taken over among global investors. They are pulling out of stock markets because they sense they are more likely to lose money there than make it. And they are putting that money in low-risk bonds - regardless of how little they pay.

It was not the only coup Germany pulled off last week. It also offered a two-year note, on which it promised to pay no interest at all. Give us €10 million now, and we'll pay you back €10 million in 2014; that's the deal. To get investors into this one, the Germans did have to pay a small yield, but just 0.07 per cent. That's value!