From JP Morgan’s Flows & Liquidity, a chunk of negative rate stats that are pointing us somewhere. It’s just unclear exactly where right now:
Splitting by region, the stock of Japanese government bonds trading with negative yield reached $6.1tr. This brought the proportion of JGBs trading at negative yields to 78% of the total outstanding amount.
In the Euro area, $2.4tr of government bonds trade with negative yields, or around 36% of all Euro area government bonds. Within the Euro area, the proportion of bonds trading at negative yields is the highest in Germany, or 77%. Further, we find that $682bn of Euro area government bonds with maturities greater than 2 years trade at yields below -40bp, making these bonds ineligible for ECB purchases.
And yes, we do note that the yields don’t really have to care if this nuts.
Related link:
In 10 years time, what will we think about negative yields? Medium, Weldon
So you want to buy more Bunds, Mr Draghi? FT Alphaville
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