From Reuters, Aug 7:
Investors may have to grapple with the possibility of the once-unthinkable becoming reality - negative U.S. Treasury bond yields, according to money manager Pacific Investment Management Co (PIMCO).Here's the PIMCO blog:
Despite their dramatic drop since last week, U.S. Treasury yields remain among the highest for developed economies as the United States continues to enjoy its longest-ever expansion.
But a deteriorating global outlook exacerbated by an escalating trade war between China and the United States, the world’s largest economies, has stoked a torrent of demand for low-risk government debt.
Most German and Japanese bond yields are currently in negative territory.
“It is no longer absurd to think that the nominal yield on U.S. Treasury securities could go negative,” Joachim Fels, PIMCO’s global economic adviser, wrote on Wednesday in a blog post.
The negative rate policy and massive bond purchases by the European Central Bank and the Bank of Japan have resulted in about $14 trillion, or 25%, of the total amount of bonds around the world posting negative yields, Fels noted... MORE
Interest Rates: Naturally Negative?
It is no longer absurd to think that the nominal yield on U.S. Treasury securities coul...
By Joachim Fels
Finally, from a twisted mind via Vimeo:
