Negative Yielding Bonds in the Barclays/Bloomberg Global Aggregate Index

Negative Yielding Bonds in the Barclays/Bloomberg Global Aggregate Index These charts put things into perspective. Keep in mind that bondholders will get back less than what they paid if they hold bonds to maturity. Negative yield bonds are also a tax on bondholders. Picture source: Bianco Research

Gold Bullion and Market Capitalisation of Global Negative Yielding Debt

Gold Bullion and Market Capitalisation of Global Negative Yielding Debt This chart shows a strong correlation between gold and market capitalization of global negative yielding debt. Keep in mind that negative global yields are a support for gold. Picture source: Pictet Wealth Management

The Amount of Outstanding Negative-Yielding Debt since 2009

The Amount of Outstanding Negative-Yielding Debt since 2009 Investors are paying governments for the privilege of holding their bonds and are losing so much money in real terms. Raising interest rates in the future could be painful for bond investors. Picture source: Jeroen Blokland, Bloomberg

Yield Curve Inversion, How Long Until The Recession?

Yield Curve Inversion, How Long Until The Recession? In recent history, once the 10-Year minus 3-Month Treasury yield spread is negative and hits 10 consecutive days, it persists for weeks/months. When an inverted yield curve occurs, short-term interest rates exceed long-term rates. It suggests that the long-term economic outlook is poor and that the yields offered…