The global stock of bonds offering sub-zero yields is falling, with bond prices falling amid rising inflation expectations.
The total tally of negative-yielding debt has declined by $3 trillion this year to below $15 trillion for the first time since September, as noted by macro analyst Holger Zschaepitz. However, as per Bloomberg’s calculations, bonds offering negative yields still make up a fifth of the market.
However, if the tally keeps falling, store of value assets such as gold will likely suffer losses. Equities, too, could come under pressure, putting a bid under the US dollar.
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