The European
Central Bank has pushed yields on the corporate-bond market so low
that they no longer meet the criteria of its own bond-buying program,
Bloomberg reports.
According to
the media’s data, yields on bonds from Paris’s public transport
network have already dipped to -0.4 percent. Bonds from Europe’s
largest engineering company Siemens, as well as French train operator
SNCF and oil company Sagess are approaching this threshold.
As more and
more corporate bonds in Europe are turning negative, economists are
raising questions how long the ECB can stimulate growth through
buying bonds.
Yields on
€2.6 trillion worth European government bonds have turned negative
after the central bank bought €1.3 trillion in fixed-income assets,
including €32 billion in corporate bonds, Bloomberg reports.
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