October 3, 2019 / 8:31 AM / 5 months ago

Almost 70% of euro zone bond yields have sub-zero yields - Tradeweb

LONDON, Oct 3 (Reuters) - The pool of negative-yielding government bonds in the euro area now makes up almost 70% of those on the Tradeweb platform but was relatively stable from month-ago levels, according to new data from the electronic bond trading firm.

Growing recession risks, a bitter global trade war and central bank stimulus have pushed bond yields across the world lower this year, deepening the pool of assets with sub-zero yields.

But concerns that central bank stimulus is reaching its limits has tempered the bond rally, with euro area debt markets selling off in recent weeks.

Of the roughly 8.18 trillion euros of euro zone government bonds traded on Tradeweb, 68.8% or 5.63 trillion euros' worth, have a negative yield, data as of end-September showed.

While this was the highest share on record -- the data goes back to mid-2016 -- it was up just marginally from the August numbers.

Of the roughly 3.4 trillion euros of euro investment grade corporate bonds traded on Tradeweb, around 1.17 trillion euros or almost 34% had a negative yield at the end of September.

That's down from a record 49.5% share at the end of August.

Reporting by Dhara Ranasinghe; Editing by Saikat Chatterjee

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