Negative-Yielding Sovereign Debt

Pages 17-20 of the Doubleline presentation below, detailing negative-yielding debt, are very interesting. $7.85 trillion worth of negative-yielding sovereign debt is not without its consequences. U.S. treasuries account for almost 60% of all positive-yielding G10 debt. Negative interest rate policy is unable to boost broad economic growth, just as large-scale asset purchases have been shown to be ineffectual. The use of experimental and untested policies by many of the world’s central banks indicates desperation.

“Central banks are losing control and they don’t know what to do” – Jeffrey Gundlach from



Many thanks to Niels Bo Bojesen for the image. Great work: