Negative yield debt madness accelerates. A new record high breached $15 trillion on Monday.
Negative-Yielding Debt in Bloomberg Index
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New Records
Negative debt topped $15T today (record), up over $1T in two business days.
— Jim Bianco (@biancoresearch) August 5, 2019
Negative debt now 27% (record) of all developed country sovereign debt.
Negative debt now 44% of of all developed country x US sovereign debt.@MishGEA pic.twitter.com/XXNBcgHD02
Highlights from Jim Bianco at Bianco Research.
Key Points
- Negative debt topped $15 Trillion today on Monday, up over $1 Trillion in two business days.
- Negative debt is now 27% of all developed country sovereign debt, a new record.
- Negative debt now 44% of of all developed countries excluding US sovereign debt.
Excluding the US
Negative Yield Bond Matrix
Negative Bond Yields through...
— Charlie Bilello (@charliebilello) August 5, 2019
50 yrs: Switzerland
30 yrs: Germany, Netherlands
20 yrs: Denmark
15 yrs: Japan, Austria, Finland, Sweden, France, Belgium
10 yrs: Slovakia, Ireland, Slovenia
8 yrs: Spain
7 yrs: Portugal
5 Yrs: Malta
3 yrs: Cyprus
2 yrs: Italy
1 yr: Bulgaria pic.twitter.com/YX3u0QgGPZ
Swiss 100-Year Bond
Uh ... No thanks
— Mike Mish Shedlock (@MishGEA) August 5, 2019
You firts https://t.co/Ozfmh9mMQY
Germany
With German govt bonds, only one thing is certain: you will lose money w/them until you don't find another fool who buys the paper from you at a higher price before maturity. 97% of the €1.3tn outstanding German Bunds carry negative interest rates, @BarkowConsult has calculated. pic.twitter.com/GCqEv2GnOI
— Holger Zschaepitz (@Schuldensuehner) August 4, 2019
Global Bond Bubble
Bond bubble keeps inflating. Value of global bonds has hit a fresh high of almost $55.3tn as global CenBanks concertedly are cutting interest rates. pic.twitter.com/SZ6T0Rm9tR
— Holger Zschaepitz (@Schuldensuehner) August 4, 2019
Thought of the Day
Globally coordinated monetary policy is morphing into globally competitive monetary policy.
— Michael Lebowitz, CFA (@michaellebowitz) August 1, 2019
From a macro perspective that may be the most important concept investors must understand.
Another Thought of the Day
Good Morning from #Germany where bond markets have Japanized more quickly than in #Japan. Germany’s 10y govt bond yields reached 0% in one-third the time Japan required. pic.twitter.com/Qfyk5Oslfi
— Holger Zschaepitz (@Schuldensuehner) July 31, 2019
Thread of the Day
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Logically Impossible
Negative debt implies a negative time preference. In the real world, that cannot happen.
In easy to understand terms, negative time preference means someone would rather have 90 cents ten years from now than a dollar today.
Such a construct is only possible with massive central bank intervention.
Anger
So the ECB, BOJ, SNB and Riksbank have negative interest rates but we determine that China is the currency manipulator whose currency is down a whopping 2.5% this year vs the dollar. Anger is now driving the approach towards China, certainly not economic logic.
— Peter Boockvar (@pboockvar) August 5, 2019
In regards to the above Tweet, please see US Treasury Declares China a Currency Manipulator Under Orders From Trump
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