$31 trillion in bonds now draw negative real yields says JP Morgan
“JPMorgan Chase & Co. says the stockpile of developed sovereign debt with a negative yields adjusted for inflation has doubled over the past two years to $31 trillion. As the Federal Reserve prepares to let prices run hotter to fix the pandemic-hit labor market, the Wall Street bank has a message for investors: Get used to it.”
USAGOLD note: The global bond market is valued right at $100 trillion. Thus 31% of the total delivers a below zero real rate of return. The bond market is stood on its head with the final outcome yet to be determined.
Repost from 10/10/2020