European negative yield debt pool widened in November – Tradeweb


An illustrative photo of euro banknotes, April 25, 2014. REUTERS / Dado Ruvic

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LONDON, Dec. 1 (Reuters) – The euro area’s negative-yielding government debt pile reached its highest level in three months in November, as investors lowered their bets on the rate hike and backed down. rushed into safe haven debt in an uncertain outlook. , Tradeweb data showed.

The value of negative-yielding euro-denominated government debt stood at around 6.19 trillion euros ($ 7.01 trillion) at the end of November, up from 4.9 trillion a month earlier, according to data. from Tradeweb Wednesday.

Negative yielding debt represented 67% of a total euro area government bond market worth more than 9 trillion euros on the Tradeweb platform, up from 54% a month earlier. This is the highest share since August.

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The pool of negative yielding UK government bonds reached its highest level since January at £ 765bn, or around 28.5% of a total market worth around £ 2.69 trillion , Tradeweb said.

Sovereign bond yields have fallen sharply in recent weeks as central banks pushed back aggressive market prices for interest rate hikes and the emergence of a new variant of the coronavirus, Omicron, sparked new momentum for fixed income securities.

The share of negative yielding investment grade corporate bonds denominated in euros was little changed at the end of November, at around 26% of a total market worth 3.7 trillion euros, according to data from Tradeweb .

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Reporting by Dhara Ranasinghe Editing by Gareth Jones

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