Posts tagged: bonds yielding less than zero

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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