A pedestrian looks at an electronic board displaying a graph of the US 10-year Treasury yield outside a securities firm in Tokyo, Japan, on January 4. Forty per cent of global bonds currently yield less than 1 per cent. Photo: Bloomberg
Nicholas Spiro
Opinion

Opinion

Macroscope by Nicholas Spiro

A mini bear market in bonds might be what the world needs as investors amass US$13 trillion in negative-yield debt

  • The plunge in bond yields, which has powered a stock market rally, partly reflects investors’ outsize expectations of further monetary stimulus
  • Positive news on the US-China trade war could trigger a fixed income sell-off on fears that central banks might pull back from policy easing

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A pedestrian looks at an electronic board displaying a graph of the US 10-year Treasury yield outside a securities firm in Tokyo, Japan, on January 4. Forty per cent of global bonds currently yield less than 1 per cent. Photo: Bloomberg
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