Like corn kernels popping in the microwave, government bond yields continue to slip into negative territory around the world. It’s relentless, and speaks volumes about just how nervous investors are at present.
The latest to go has been the Japanese 20-year JGB bonds, falling below 0% just a few minutes to go.
As the chart below, supplied by Katie Hill of ANZ, reveals, it is just the latest in a long line of sovereign bonds to join this infamous club.
The durations with negative yields are shown in orange.
Just look at Swiss government bond yields, investors are willing to invest for 50 years in order to receive less than what they would invest today.
Just think about that. Every Swiss bond is now trading with a negative yield. Investors are paying the Swiss government to borrow from them.
Across much of Europe, great chunks of government debt are also trading with negative yields. Benchmark 10-year bond yields in other nations such as the US, UK and Australia are also trading at or close to record lows as well.
While markets continue to debate what this remarkable move actually means, for those who look to yield curves to judge where economic growth and inflation is heading, it paints an unsettling picture.
You can follow Katie on Twitter. Her handle is @katie_hill2