Skip to content
Subscriber Only

Draghi's Signal Adds $190 Billion to Negative-Yield Universe

  • Bonds pare gains Friday after rally sparked by ECB president
  • ECB policy has created an `exceptional environment': DZ Bank
Updated on

With his confirmation that policy makers discussed cutting the region’s deposit rate, Mario Draghi extended the euro area’s negative-yield universe by $190 billion.

Those comments by the European Central Bank chief on Thursday sparked a rally that left yields on German sovereign securities negative for as long as six years, and pushed Spanish and Italian two-year yields below zero. Across the currency bloc, the value of securities issued by governments at negative yields rose to $1.57 trillion, from $1.38 trillion before Draghi spoke, according to data compiled by Bloomberg. That’s equivalent to about a quarter of the market.