Negative Bond Yields Hit New Record Around the Globe

Wed, Jun 19, 2019 - 5:21pm
negative debt
Source: Bloomberg, Financial Sense Wealth Management. Note: You cannot invest directly into an index

The amount of debt around the globe yielding less than 0% has soared to a new record above $12 trillion.

What's really interesting about this is that the share of negative-yield debt dropped in half from 2016 until last year. Then, in just the last eight months, it skyrocketed to new highs again with record outflows from stocks and into bonds, pushing bond prices up and bond yields lower.

This was something we discussed with Martin Armstrong recently on FS Insider that's creating havoc for Europe, which is where a large portion of this debt is located, and which, he believes, will actually continue to push capital into the U.S. stock market and a variety of other areas until it eventually culminates in an epic bubble.

If you haven't already heard our interview with Armstrong on FS Insider, see Martin Armstrong on Europe's Hard Landing, 2020 Political Nightmare. Not a subscriber? Click here.

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