European negative-yielding govt bond pool now less than 9% of market

The pool of negative-yielding euro zone government bonds fell to a new low in July as the European Central Bank hiked its key rate to 0%, data from electronic bond trading platform Tradeweb on Monday showed.

The pool of negative-yielding euro zone government bonds fell to a new low in July as the European Central Bank hiked its key rate to 0%, data from electronic bond trading platform Tradeweb on Monday showed. Just 752 billion euros ($771 billion) of euro zone government bonds carried negative yields as of end-July, Tradeweb said, down from 809 billion euros in June.

That means negative-yielding bonds made up roughly 8.7% of a total market worth 8.6 trillion euros on the Tradeweb platform, versus around 9.7% at end-June. The end-July number was the lowest since at least 2016, when Tradeweb first started compiling the data for Reuters.

While all benchmark euro zone government bonds now carry positive yields, Tradeweb's data also includes inflation-linked bonds, some of which still offer negative yields. In corporate bond markets, negative-yielding euro investment grade bonds totalled slightly more than 20 billion euros in July, or 0.54% of the total market, versus 37 billion in June.

(This story has not been edited by Devdiscourse staff and is auto-generated from a syndicated feed.)