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.
An upgrade for the US, Europe and Japan is offset by downgrades for Mexico and other major emerging economies.
Deutsche Bank, HSBC, KBC, Natixis, Rabobank, Société Générale and UniCredit signed a memorandum of understanding in Brussels for developing digital trade chain (DTC).
The Swedish corporate bank’s fixed income macro strategist believes rising infltaion will see the Riksbank lift rates.
ClearBank is likely to concentrate on services for fintechs, according to founder Nick Ogden who originally launched WorldPay.