It was not even a month ago when we last looked at the total amount of negative yielding debt around the globe, and were shocked to find that according to Fitch, for the first time in history (obviously), there was over $10 trillion in negative yielding debt. Fast forward 4 weeks later, and the grand total is now $1.3 trillion higher, or $11.7 trillion.
The split between positive and negative yielding debt is shown in the chart below:
In a report released earlier, Fitch updates on the “investors’ flight to safe assets following the UK’s EU referendum on June 23” and finds that the global total of sovereign debt with negative yields was a staggering $11.7 trillion as of June 27, up $1.3 trillion from the end-May total. Brexit-related concerns drove more long-dated bond yields negative, with particularly big shifts in German, French and Japanese yield curves during June.
As Fitch notes, worries over the global growth outlook, further fueled by Brexit, have continued to support demand for higher-quality sovereign paper in June.
Read full article: Zero Hedge
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