Congratulations to Switzerland for reaching the mind numbing achievement of negative yields on 50-year bonds.

The Financial Times reports Entire Stock of Swiss Bond Yields Turns Negative

As of today, Switzerland’s entire stock of government debt is now trading at negative yields – with the last to go a bond that does not mature for almost 50 years.

Yields on the Swiss 2064 paper dropped below zero for the first time on Friday, meaning investors are willing to pay more to hold the bond than they will get back in interest and repayment of principal, writes Elaine Moore.

Around the world, government bond yields have fallen to new lows this week as investors anticipate years of ultra-low interest rates.

The yield on benchmark, 10-year UK gilts has reached a fresh low of 0.78 per cent following the UK’s vote to withdraw from the EU and Bank of England governor Mark Carney’s announcement on Thursday that monetary easing was possible in the summer. Swiss 10-year bonds are trading at minus 0.66 per cent.

Swiss Yield Curve

Swiss Yield Curve

Chart from Swiss Exchange.

Chart does not show 50-year bonds but they are negative too, for the first time today.


Mike “Mish” Shedlock