Monetary policy ‘normalization’ is over, folks. The idea that the Central Banks can end – cautiously or not – the spread of negative or ultra-low (near-zero) interest rates is about as balmy as the idea that the said negative or near-zero rates do anything materially distinct from simply inflating the assets bubbles.
Liquidity moves markets!Follow the money. Find the profits!
Behold the numbers: the stock of negative yielding Government bonds traded in the markets is now in excess of USD10 trillion, once again, for the first time since September 2017
Over the last three months, the number of European economies with negative Government yields out to 2 years maturity has ranged between 15 and 16:
More than 20 percent of total outstanding Sovereign debt traded on the global Government bond markets is now yielding less than zero.
I have covered the signals that are being sent to us by the bond markets in my most recent column at the Cayman Financial Review (https://www.caymanfinancialreview.com/2019/02/04/leveraging-up-the-global-economy/).
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