Investor anxiety pushes bond market to extremes

  • 📰 SkyNews
  • ⏱ Reading Time:
  • 45 sec. here
  • 2 min. at publisher
  • 📊 Quality Score:
  • News: 21%
  • Publisher: 67%

United States News News

United States United States Latest News,United States United States Headlines

Fears of a downturn spurred by global trade fears appear to be driving unusual behaviour in the market for German government debt.

Quite a lot of people, to judge by what has been happening in the bond market.

Bank of America research suggests that, of the current $100tn worth of debt currently outstanding worldwide, some $11tn worth of it is trading on a negative yield.It was a phenomenon seen at the height of the eurozone sovereign debt crisis, in 2012, but conditions had somewhat moderated since.So why has the phenomenon returned?There is growing unease about a possible global recession following a slowdown in a number of leading economies.

The country is also still sweating on whether Donald Trump will follow through with a threat to raise tariffs on cars and car parts exported from Europe to the US - the most important export market for German carmakers. But worries were reignited when, on Tuesday, another survey pointed to a drop in consumer confidence despite there being record numbers of Germans in work and wages growth comfortably outstripping inflation.

 

Thank you for your comment. Your comment will be published after being reviewed.
Please try again later.
We have summarized this news so that you can read it quickly. If you are interested in the news, you can read the full text here. Read more:

 /  🏆 35. in US

United States United States Latest News, United States United States Headlines

Similar News:You can also read news stories similar to this one that we have collected from other news sources.

Recession fears hit global markets, but German morale improves - business liveRolling coverage of the latest economic and financial news, as markets are hit by anxiety over the global economy
Source: The Guardian - 🏆 84. / 53 Read more »

German consumers and French factory bosses become gloomier - business liveRolling coverage of the latest economic and financial news, including a worrying drop in consumer confidence in Europe’s largest economy which makes me wonder why i see chirpy private energy companies that stole off uk 'hoping to penetrate' when the company is in court just a set of desperate men on a spreadsheet of hope tht has no hope and they got conned thinking eu could copy uks new design without paying such
Source: The Guardian - 🏆 84. / 53 Read more »