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25% of bonds in the world make lenders pay for the privilege of owning them, chart shows

July 26, 2019

Much has been made of the outcropping of negative yielding bonds across the globe.

Some $13 trillion in sovereign debt now bears a negative yield, which means that investors get back less than their original investments for the privilege and perceived safety of owning government-backed debt.

It’s an odd dynamic in markets but one that has proliferated after more than a decade of monetary-policy unorthodoxy intended to juice stubbornly low inflation and anemic growth in Europe and parts of Asia.

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