Posts tagged: Bank of America-Merrill Lynch

The percentage of bonds yielding less than zero

The adoption of negative interest rate policy by the European Central Bank and Bank of Japan, among others, has had a dramatic impact on bond markets. The chart from Bank of America-Merrill Lynch (BAML) breaks down the share of the global fixed income debt that currently trades with a positive yield compared to those yielding below zero.

According to calculations from BAML’s European credit strategy team, 23% of bonds globally yield less than 0% at present, up substantially on 13% level seen the beginning of the year. Based on the chart, that equates to around $9 trillion in bonds that are currently trading with negative yields, a figure that could grow even larger should the current trend be maintained.


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