Pool of Negative-Yielding Debt Is Now the Least in Three Years
- Negative-yielding debt disappearing after peaking in pandemic
- Roll-back of central bank stimulus is fueling bond selloff
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The world’s well of debt with yields below zero has shrunk to the lowest in more than three years as the prospect of imminent interest-rate hikes drives a selloff in bonds.
The amount of negative-yielding securities has fallen to $7.67 trillion, according to a Bloomberg index, the least since 2018. It has slumped almost 60% since a late-2020 peak as central banks took the first steps toward reducing the extraordinary stimulus that propped up bond markets and sent yields diving during the pandemic.