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Negative-Yield Contagion Spreads as Draghi Mania Moves East

  • Bonds with sub-zero rates expand fivefold to 47 billion euros
  • Convergence with West means investors ignore emerging label
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Low Rates More of a Hindrance than Help, Says Jeffrey

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Think of the nations whose bonds yield less than zero, and Japan, Switzerland, Germany and France jump to mind.

Yet there is a group of much poorer, ex-communist, countries that also get paid by investors eager to park their cash with them. Government debt from developing Europe trading at negative rates has swelled more than five-fold over the past 12 months, and countries that have benefited include the Czech Republic, euro members Latvia, Lithuania, Slovenia and Slovakia, as well as Poland and Romania.