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.
The success of centrist Emmanuel Macron in the first round dispelled fears of a victory for the far-left candidate Jean-Luc Mélenchon.
However, the region’s mature markets such as China and India are set to benefit most, real estate group CBRE reports.
The latest annual survey by US group Treasury Strategies reports that their priorities are familiar, but treasury is adopting a fresh approach to tackling them.
A credit card with a built-in fingerprint scanner rather than a PIN or signature to authorise payment is currently being trialled in South Africa.