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Negative Debt Pile Swells By $1 Trillion as Trade Clouds Gather

  • Trump trade talk and ECB rate reticence spur flight-to-safety
  • Less-than-zero yields underscore fears for global expansion
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Bonds to Benefit From Trade Tensions, Capricorn Says

Bond investors are looking pretty pessimistic on growth.

As the U.S. and China move closer to a trade war and the European Central Bank prolongs stimulative rates, traders are piling into the safety of government debt and enlarging the stock of bonds with below-zero yields. In just six days through Tuesday, the world’s pile of negative-yielding debt surged almost $1 trillion to $8.1 trillion, according to data compiled by Bloomberg.