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Bond Traders Seek Greater Fools as Global Yields Extend Plunge

  • World government debt in best start to any year since 1995
  • Bond rally ‘like a game of musical chairs,’ TD’s Goldberg says
Bloomberg business news

Finding Opportunity in a Sinking Yield Environment

Updated on

To make money in today’s bond market, keep finding the greater fool.

That’s the strategy driving traders to bid up global sovereign debt even as yields fall to record lows and as over $8 trillion of government securities yield less than zero. Investors who buy bonds with negative yields aren’t just willing to lose money as they seek safe havens -- they’re hoping there will always be another trader ready to buy at a higher price.