Global bond yields are now heading into subzero territory. Investors simply pay just to place their cash in government debt. After German 10-year sovereign bonds dipped to under zero this week (SEE: German 10-year sovereign bond yields reach negative territory for first time in history), Swiss government debt followed suit.
The yield on the 30-year Swiss bond declined into negative territory on Thursday, according to MarketWatch. During the trading session, the 30-year bond yield tumbled 5.5 basis points to negative 0.055 percent.
Last week, the 20-year Swiss bond yield also decreased into negative territory, while the 10-year bond yields have been trading in subzero territory since January 2015.
The drop comes as many investors are frightened of Great Britain exiting the European Union, otherwise known as a Brexit.
It was reported this month that there are more than $10 trillion worth of bonds all over the world that now deliver negative yields to investors (SEE: Global negative-yielding debt surpasses $10 trillion for first time in May). What an interesting financial market we’re in!
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