Negative Yields May Be A Result Of Market Structure, Not Central Banks

Since the UK voted to leave the EU on June 23, government bond yields around the world have collapsed to new lows as central banks in Japan and Europe tried to stimulate moribund economies through bond-buying programs and negative-interest-rate policies.

Stay Positive: How To Go Global And Avoid Negative Yields

On Tuesday of this week, yields on government bonds from Germany, the UK, the US, Switzerland, France, Denmark and Sweden fell to fresh historic lows. The declines continued into Wednesday when the yield on Japan’s benchmark 20 year government bond fell below zero for the first time according to Tradeweb.

It’s unlikely this trend will go into reverse anytime soon. These lower yields reflect expectations that central banks around the...