18 European Countries Have Negative 2Y Sovereign Yields As Negative-yielding Bonds Hit $8.6 Trillion

The market value of the world’s negative-yielding bonds has jumped almost 25 percent over the past month to $8.6 trillion amid slower-than-forecast inflation data and as investors piled into the safest securities as perceptions of geopolitical risk increased. That’s happened even after Federal Reserve officials started raising benchmark borrowing costs and said they would begin running off their $4.5 trillion balance sheet “relatively soon.”

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And Europe dominates the negative sovereign bond yield market with 18 countries in negative 2Y territory.

emea2yrneg

Good luck to the European Central Bank in lowering rates in the next crisis when their Main Refinancing rate is already at 0%.

fedecb

draghi

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