Search Results for: negative rate

Proxy for ECB Market Pricing Points to Negative Rates for Years to Come Markets are pricing in negative rates in Europe until 2029. Image: Deutsche Bank

Do Central Banks’ Negative Rates Work in Europe? Not really. Actually, negative rates distort economies and leave little room to maneuver in the next recession. Secondly, extremely low interest rates are also bad for European banks, like Deutsche Bank, which in turn is bad for economic growth. It’s a feedback loop which could lead to…

Five Central Banks With Negative Rates Money markets expect the ECB will cut rates by Q1 2020. Image: Bloomberg

Negative Real Rates Around the World Most economies in the world experience negative real rates. Image: Gavekal, Macrobond

Interest Rates – Market-Implied Probability of Negative Policy Rate 1 Year Ahead Negative interest rates in the US and the UK ahead? Option markets point to elevated probabilities. Image: Goldman Sachs Global Investment Research

Expected Fed Funds Rate, Negative Interest Rates and 2-Year Treasury Yield Negative U.S. yields are in sight, as Fed funds futures for June 2021 imply an expected negative rate of -0.03%. Image: Fidelity Investments

Percentage Share of Advanced Countries GDP Recording Negative Real Interest Rate Since 1314 This chart shows the record high level of advanced countries GDP experiencing negative real interest rates. Image: Deutsche Bank Global Research

Negative Yielding European Corporate Bonds Now, €1.1 trillion of European corporate bonds yield are below zero: exactly half of the European high-grade credit market. Image: BofA Merrill Lynch

Percentage of the World with Negative 10-Year Rates Now, around 20% of the world is living with negative 10-year rates. Image: BofA Merrill Lynch

Total Negative Yielding Corporate Bonds Outstanding Negative-yielding corporate debt passed $1 trillion in market value. Investors face significant risk should rates start to rise. Image: Bianco Research