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Negative-Yielding Bonds Plummet to $8.7 Trillion After Trump Win

  • 14% drop in one week follows October’s less-than-zero plunge
  • Market value of such assets now down 28% from June’s peak
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Are Bonds in a Bear Market?

The market value of the world’s negative-yielding bonds plunged 14 percent last week to $8.7 trillion as investors dumped government debt at a record clip after Donald Trump’s upset win stoked speculation that his ambitious fiscal plan would flood the market with new Treasuries and boost inflation.

The $1.4 trillion decline from Nov. 4 in the total amount of debt certain to lose money if held to maturity was fueled mostly by increased government-bond yields following the U.S. presidential election. The Bloomberg Barclays index of the prices for such debt worldwide fell 3.2 percent last week, the biggest decline since at least 2000, as far back as the data goes.