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Negative-Yielding Debt Exceeds $18 Trillion As Global Market Cap Hits $100 Trillion

The pool of negative-yielding debt across the world exceeded $18 trillion for the first time in history, according to Bloomberg data. The move came after the ECB announced it will expand its massive monetary stimulus program by another €500 billion and will extend emergency bond purchases for nine months.

In a context where global economic policy uncertainties remain particularly high (Covid-19, Brexit, U.S. fiscal stimulus, etc.), it seems that central banks in advanced economies are ready to be even more accommodative in the coming months to support confidence and economic activity. As a reminder, according to my calculation, G7 central banks’ combined balance sheet has already increased by more than $8.0 trillion since February 2020.

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