I was reading this article about repurchase agreements.
I don't understand this graph:
And this paragraph:
Borrowing rates using German and French government bonds as collateral fell to minus 4.9% and minus 5.3%, respectively, which meant market participants were being paid record amounts to borrow.
Why would borrowing rates be negative?
So if I have German bonds and give them to a bank for 100\$, then I will pay back only 95.1\$?
Why would the bank accept such a deal? Besides the fact that they loose money, don't they need to hold cash?