The yield on Dutch 10-year government bonds, which have been steadily heading towards zero, turned negative and touched a record low of -0.007%.
They have fallen about 30 basis points since the UK referendum on June 23, which saw British voters support the country’s exit from the European Union (EU) and stoked fresh uncertainty over the prospects for global growth and inflation.
The Netherlands now joins a growing number of countries where the yields on government bonds have fallen below zero. There are four other countries – Germany, Switzerland, Japan and Denmark – where 10-year rates have turned negative.
However, Goldman Sachs has recently become more positive on the outlook for bonds in the short term and upgraded the asset class to “neutral”, while warning that investors’ search for positive yield is spurring them to take on more risk despite growth concerns.
By 2030 artificial intelligence will add more than US$15 trillion to the world economy according to the group’s research, but most of that gain will go to North America, Europe and Asia.
Companies are warned that they must improve their resilience, as incidents such as this week’s ‘Petya’-style attack become increasingly common.
A report by the Lloyd’s of London insurance market finds that the sector is second only to financial services as the target of attacks.
The Bank of England calls for UK banks to put aside an extra £11.4bn to deal with any future economic slowdown in its latest financial stability report