Posted on 06/18/2017 1:28:23 PM PDT by Lorianne
The staggering level of government debt carrying negative yields, after falling from its peak a year ago, is back on the rise.
A slew of factors converged in May to send the global total to $9.5 trillion of sovereign debt — a situation where governments effectively are getting paid to borrow money, according to Fitch Ratings. The total represented a 10.5 percent increase from April.
Prominent investors have warned of the dangers of so much negative-yielding debt. Janus Henderson's Bill Gross has called it a "supernova" that will "explode," while Deutsche Bank CEO John Cryan has cautioned about "fatal consequences" of central banks being enticed by slashing rates to that extent.
The level spiked last year as global central banks enacted ultra-easy monetary policies in an effort to spur growth. Fitch said the French election, in which mainstream candidate Emmanuel Macron won against right-wing maverick Marine Le Pen, and the decline in the U.S. dollar helped pull rates back down.
"Higher yields have alleviated some pressure for investors, but challenges remain as yields in many developed economies are still near historic lows," said Jonathan Boise, Fitch's associate director for macro credit research.
(Excerpt) Read more at cnbc.com ...
Did the GOP repeal ObamaCARE as they promised they would do?
Did they?
Did they even protect the USA and Constitution and
chosen President as SWORE to do by Oath?
Did they?
An individual, except the President, elected or appointed to an office of honor or profit in the civil service or uniformed services, shall take the following oath: “I, AB, do solemnly swear (or affirm) that I will support and defend the Constitution of the United States against all enemies, foreign and domestic; that I will bear true faith and allegiance to the same; that I take this obligation freely, without any mental reservation or purpose of evasion; and that I will well and faithfully discharge the duties of the office on which I am about to enter. So help me God.” This section does not affect other oaths required by law.Nothing in there about protecting the president.
I think it’s just the Fed that has power over interest rates.
Are you saying positive actions by congress would have affected the Fed’s policy? Just wondering :)
Switzerland's 10-year note was yielding -0.124 percent Friday, while Japan's two-year was at -0.119 percent. The U.S. has no negative-yielding debt.
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Switzerland’s 10-year note was yielding -0.124 percent Friday, while Japan’s two-year was at -0.119 percent. The U.S. has no negative-yielding debt.
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Thanks. I was wondering where all this negative yielding debt was at. I figure safety and exchange rates may make it an attractive investment for some.
I wouldn’t buy a Treasury Bond WITH good yield ... it feeds the lawless piggies. No way I’d pay them up front for the honor of loaning them money!
So let’s add a Trillion dollar stimulus aka union bailout! As smart as inking an arms deal w Saudis by your never forget 9/11 poster.
GOP doesn’t have to kill Obamacare. They are pulling the plug on government buying Fannie Mae mortgages that fund Obamacare, resulting in the death of Obamacare.
Only in the same sense that minimal concentrations of cyanide are 'safe': they won't kill you at once.
If someone, or a lot of someones, are accepting negative yields on debt, clearly someone (or a lot of someones) is fearing some sort of catastrophe in the hear future.
Also, you should note that the Swiss, beginning in 1973, were the first to issue large amounts of negative-yield debt. Tell you anything, amigos?
McConnell’s Senate is making Ryan’s (the epitome of a backstabbing RINO) House look almost good.
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