September 2, 2019 / 10:02 AM / 2 months ago

Share of negative-yield euro zone bonds at new record high-Tradeweb

LONDON, Sept 2 (Reuters) - The pool of negative-yielding bonds in the euro area expanded further in August, with almost half of euro-denominated corporate bonds on the Tradeweb platform now carrying negative yields, Tradeweb said on Monday.

Of the roughly 3.4 trillion euros of euro investment grade corporate bonds traded on Tradeweb, 49.51% or 1.68 trillion euros worth, have a negative yield, data as of the end of August from the platform showed. This stood at around 12% in January.

That was the highest share on record, according to data compiled from Tradeweb that goes back to mid-2016.

The Tradeweb data also showed the pool of government bonds with negative yields soared in August.

Of the 8.18 trillion euros of euro zone government bonds on the Tradeweb system, 5.6 trillion euros or almost 69% of the total, had a negative yield — the highest on record. At the start of 2019, less than 40% of governments bonds on the Tradeweb platform carried negative yields.

The share of euro zone government bonds yielding below the ECB’s -0.4 pct depo rate rose to 49% at the end of August, from 42% in July. (Reporting by Dhara Ranasinghe; editing by Sujata Rao)

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