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.
Investors had anticipated that the Italan premier´s proposed constitutional reforms would be rejected, although the margin of defeat was heavier than expected.
Research from two UK business schools suggest debt-funded share buybacks boost the share price in the short-term and also the company’s performance longer-term.
GE and the Iraqi government will partner with Standard Chartered and the Trade Bank of Iraq to accelerate power and infrastructure projects.
Credit ratings agency Fitch has issued an update on the use in Europe of repurchase agreements, aka repos, by money market funds.