Despite 'Growth Promise', Global Negative-Yielding Debt Surges To Highest Since October

Tyler Durden's picture

The market value of bonds yielding less than zero percent has jumped by a quarter over the past month to $8.68 trillion, the highest since October... which is odd given the mainstream narrative that everything is awesome and global growth is heading for escape velocity?

"probably nothing"


As Bloomberg notes, slower-than-forecast inflation data and haven demand on geopolitical risk have revived bond bulls around the world.

With global borrowing costs already so low, central banks should be prepared to cut interest rates deep into negative territory in the next economic downturn, warn economists including Harvard professor Kenneth Rogoff.

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Hkan's picture

Would be interesting reading a Tellus report from outer space intelligence....

Or Tellus report from the perspective.

Unless self extinguising is next week...or so...

Latitude25's picture

The lies will get bigger as we move deeper into fascism.  Rogoff is a dick.

sizzler944's picture

The AI robots are coming and it's going to be the revenge of the common man.  These things are outcome orientated and the outcome will be growth.  They'll run policy, the central banks and every significant business.  They will disappear the govt bonds of QE debt, disappear wealth and income differentials. So why bother running the economy.  Just grab what you can and bury that off shore gold bullion because quantum computers can break any encryption.

Batman11's picture

There are low returns on all forms of investment.

The markets are telling us there is a glut of investment capital.

There is very low inflation.

The markets are telling us there is insufficient demand.

We could do something about it, the world is full of pent up demand.

Warren Buffet has 73 billion, but how many cherry cokes can he drink in one day?

Warren Buffett is a demand side disaster area.

This is a problem that cannot be acknowledged, ignore the markets.

Batman11's picture

How about some redistribution to fix the problem?

"Shut up" Warren Buffett

US wealth distribution. shot 2015-06-15 at 11.28.56 am.png

"There is nothing wrong. I would prefer the system to collapse than part with a penny" the US billionaire class.

Batman11's picture

In the 1970s, we had high inflation and stagnation.

There was excessive demand and insufficient supply causing high inflation.

A supply side solution fixed the problem.

In the 2010s, we had very low inflation and stagnation.

There was excessive supply and insufficient demand causing low inflation.

Supply side solutions didn’t fix the problem.

Now students can you help the global elite by pointing out the error in their approach.

This is child's play, but beyond today's elites.

lo2hi's picture

So you don't have a job, is that what you're saying?

Batman11's picture

No one will soon, when all the money has accumulated at the top.

Keynes studied the Great Depression and saw the same “liquidity trap” we are in now.

Investors and businesses won’t invest till demand picks up, the “liquidity trap”.

Might as well do some more share buybacks until demand re-appears.



LostandFound's picture

There are low returns on all forms of investment.


Apart from the Crypto Market, just maybe some of this excess supply might find its way into there. 

Last of the Middle Class's picture

"Global macro surprise index" LMFAO!!!


wisehiney's picture

Nice spread.

Think I will pick up some TLT.

Silver Savior's picture

As far as I am concerned anything yeilding 5% or less is a negative yeild after inflation. It's all garbage. I will say it again, the times call for hard appreciating assets. Physical assets that are commonly useful. It's all just going back to basics but a lot of people have this distorted picture of what wealth is.

All by design of course.

Rebelrebel7's picture

Negative interest rates are a bank robbery in reverse in slow motion!