Negative-Yielding Debt Hits Record $14 Trillion as Fed Cuts

  • Total of negative-yielding debt globally rises to new record
  • More than a quarter of investment-grade bonds yield below zero
Negative Rates Are 'Simply Negative' for the Economy, Okada Says
Lock
This article is for subscribers only.

On the day Jerome Powell attempted to moderate market expectations for further easing, the world’s stockpile of negative-yielding bonds notched another remarkable record.

The Federal Reserve’s rate cut helped swell the total of all debt with sub-zero yields to more than $14 trillion for the first time. The market value of the Bloomberg Barclays Global Negative Yielding Debt Index closed at $14.1 trillion on Wednesday, after the biggest one-day jump in a month.