Fears over a bond bubble intensify as negative yielding debt exceeds $14trn

Bond yields predicted to sink below zero, experts argue

Global investors fear the bond market is in a bubble, as dovish central bank rhetoric and geopolitical uncertainty have sent a record amount of bond yields into negative territory.

Over $14trn of debt worldwide traded with sub-zero yields as at the end of July, according to the Bloomberg Barclays Global Aggregate Negative Yielding Debt index, surpassing the previous peak in 2016. The figure has more than doubled since September. Additionally, a bond market bubble was identified as the fourth biggest 'tail risk' in Bank of America Merrill Lynch's (BofAML) July Fund Manager Survey, with the number of professional investors fearing a bond bubble rising to 9% from zero in June. Liontrust's Milburn: 'Bond prices are absolutely crazy' Capital Economics also esti...