Negative Yields Creep Into Emerging Europe
- Universe of negative-yielding debt expands among sovereigns
- Investors turning to frontier markets amid lackluster returns
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The rally in eastern Europe’s sovereign bonds has left yield-hungry investors with little to grasp at, pushing many toward higher-risk alternatives.
All of the Czech Republic’s outstanding euro bonds are trading at negative yields, while the rate on Poland’s 2029 note is 16 basis points away from dropping below zero. Junk-rated Serbia’s 10-year bonds offer less than 1.5% and the spread on euro-area hopeful Croatia’s 2028 notes has almost halved this year.