$12 trillion of negative-yielding bonds are sending a clear message of distress

Quartz/Eshe Nelson/6-19-2019

“If reading financial markets is usually as inscrutable as reading tea leaves, bond investors have decided now is the time to send a message in big, bold letters. They want central banks to know they are concerned. Concerned about the strength of the global economy. Concerned about the US-China trade war. Concerned about geopolitics, particularly in the Middle East. Concerned about persistently low inflation.”

USAGOLD note 1:  With our concentration on U.S. economic affairs, we forget that the rush to bonds is world-wide involving nearly every nation state, every economy, every currency. Yields are dropping as investors rush to safe-havens – a category of investment that also includes gold.

USAGOLD note 2: Yesterday afternoon the yield on the 10-year U.S. Treasury went below 2%.  It has fallen over .75% since March 2019.

Chart courtesy of TradingEconomics.com

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