Over 40% of euro investment grade bonds to begin 2021 with negative yields – Bank of America

Zero-yielding store of value assets such as gold could continue attracting buyers in the near-term, as a significant number of euro investment-grade bonds are on track to begin the new year with negative yields. 

Bank of America puts that number at 42%, as noted by Jeroen Blokland, Portfolio Manager for the Robeco Multi-Asset funds. 

The global stockpile of negative-yielding bonds recently reached fresh record highs above $17.5 trillion. 

While coronavirus vaccines may become available in the next three to six months, major central banks are unlikely to halt monetary easing any time soon. As such, the stockpile of negative-yielding bonds could continue to rise.