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Share of euro zone sovereign, corporate debt with negative yields rose in Feb - Tradeweb
March 6, 2017 / 2:31 PM / 9 months ago

Share of euro zone sovereign, corporate debt with negative yields rose in Feb - Tradeweb

LONDON, March 6 (Reuters) - The share of euro zone government debt with negative yields rose to almost 43 percent last month from 40 percent in January, as French election jitters helped boost demand for safe-haven bonds, according to Tradeweb data released on Monday.

Of around 7.18 trillion euros ($7.6 trillion) of the bonds in the system, about 3.08 trillion euros, or 42.94 percent, yield less than zero.

Tradeweb’s data shows around 26 percent of euro zone government bonds yielded less than the European Central Bank’s deposit rate of minus 0.4 percent last month, up from around 22 percent in January.

Yields on two-year German government bond yields fell to a record low of minus 0.96 percent last month.

Analysts attributed that fall to several factors including increased buying of short-term paper by the ECB for monetary stimulus and demand for safe-haven German debt on heightened concerns about the popularity of the far-right anti-euro Marine Le Pen in France’s presidential race.

Around 31 percent of the euro-denominated investment-grade corporate bonds available on the Tradeweb platform yielded less than zero in February, up from about 21 percent in January.

Tradeweb’s data is based on market values as of the end of February. ($1 = 0.9430 euros) (Reporting by Dhara Ranasinghe, editing by Louise Heavens)

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